ARKANSAS PROPERTY AND CASUALTY EXAM
Premises and Operations Exposure - ANSWER An insured business conducts its
operations both at its own premises and elsewhere. For example, an accountant
conducts operations at his or her office and also away from the office when visiting
clients, the bank, the post office, networking events, etc.
CGL coverage is provided for the insured's legal liability for bodily injury or property
damage arising out of the insured's premises or the insured's operations.
Products Exposure - ANSWER A product, as defined by the CGL policy, means
any goods or products that are manufactured, sold, handled, distributed, or disposed
by the insured
Goods and merchandise are not typically considered a product until after their sale
by the insured and once they leave the insured's premises.
man who suffers an eye injury after the pen he's using explodes.
Exposure leave a business vulnerable to legal liability for defects in product design
or manufacture.
Also leaves a business exposed to liability for the failure to warn or explain with
respect to its products.
Completed Operations Exposure - ANSWER When a business performs services
or work, such as installation, construction, or repair, it's vulnerable to lawsuits and
claims resulting from improper or defective workmanship. This exposure typically
begins after the insured's operations have been completed and the insured leaves
the job site.
A cabinetmaker who builds kitchen cabinets and, a week after he installs them in a
customer's kitchen, one of the cabinets falls off the wall and injures the customer's
family dog, and
Contingent liability exposure - ANSWER The liability of others arises when a
business is held legally liable for the actions, or failures to act, of other parties, such
as sub-contractors or independent contractors. Owners and Contractors Protective
(OCP) liability, arises out of the work an independent contractor or sub-contractor
performs for, or on behalf of, the insured.
For example, ABC Building hires Paul's Plumbing to replace the sink in Harry
Homeowner's kitchen. If Paul damages the cherry cabinets in Harry's kitchen while
doing his work, ABC Building may be considered legally liable for Paul's actions.
Occurrence Form - ANSWER In the occurrence form, insurance coverage is
triggered when an "occurrence" takes place during the policy period and within the
coverage territory. Essentially, determining the coverage trigger is a single-step
process.
, Step 1. Did the loss occur during the policy period? If the answer is yes, coverage is
triggered.
Claims-Made Form - ANSWER a claims-made form, coverage is triggered if an
"occurrence" takes place AFTER the retroactive date AND is REPORTED within the
policy period.
Supplemental Extended Reporting Period - ANSWER The SERP covers claims
arising from occurrences that took place after the retroactive date and before the end
of the policy term, regardless of when the claim is made.
Extended Reporting Period (ERP) - ANSWER An additional period (also called a
"tail") following the expiration of a claims-made policy, during which the expired
policy will cover claims first made for injury or damage that occurred on or after the
policy's retroactive date (if any) and before policy expiration.
within 60 days
Coverage A- Bodily injury and personal property damage - ANSWER How much
the insurer will pay if the insured is liable
Coverage B - Personal and Advertising Injury - ANSWER Personal and advertising
injury offenses include:
False arrest, detention, or imprisonment
Malicious prosecution
Wrongful eviction from wrongful entry into, or invasion of privacy of the right of
private occupancy
Libel or slander
Violation of privacy
Use of another's idea in the insured's "advertisement"
Infringement of copyright, trade dress, or slogan in the insured's "advertisement"
Coverage C: Medical Payments - ANSWER Insurer would cover medical expenses
due to bodily injury caused by an accident on the insured's premise or because of
the insured operations
Supplementary payments- Coverages A and B - ANSWER All claim-related
expenses incurred by the insurance company
The cost of bail bonds, up to $250
The cost of bonds to release attachments
All reasonable expenses incurred by the insured, at the insurer's request, including
actual loss of earnings up to $250 per day to the insured for time off from work
All court costs taxed against the insured in a suit
Payments for prejudgment interest, which is the amount of interest that accrues on a
judgment from the time of the accident or loss until the insurer makes payment or
offers to make payment
Premises and Operations Exposure - ANSWER An insured business conducts its
operations both at its own premises and elsewhere. For example, an accountant
conducts operations at his or her office and also away from the office when visiting
clients, the bank, the post office, networking events, etc.
CGL coverage is provided for the insured's legal liability for bodily injury or property
damage arising out of the insured's premises or the insured's operations.
Products Exposure - ANSWER A product, as defined by the CGL policy, means
any goods or products that are manufactured, sold, handled, distributed, or disposed
by the insured
Goods and merchandise are not typically considered a product until after their sale
by the insured and once they leave the insured's premises.
man who suffers an eye injury after the pen he's using explodes.
Exposure leave a business vulnerable to legal liability for defects in product design
or manufacture.
Also leaves a business exposed to liability for the failure to warn or explain with
respect to its products.
Completed Operations Exposure - ANSWER When a business performs services
or work, such as installation, construction, or repair, it's vulnerable to lawsuits and
claims resulting from improper or defective workmanship. This exposure typically
begins after the insured's operations have been completed and the insured leaves
the job site.
A cabinetmaker who builds kitchen cabinets and, a week after he installs them in a
customer's kitchen, one of the cabinets falls off the wall and injures the customer's
family dog, and
Contingent liability exposure - ANSWER The liability of others arises when a
business is held legally liable for the actions, or failures to act, of other parties, such
as sub-contractors or independent contractors. Owners and Contractors Protective
(OCP) liability, arises out of the work an independent contractor or sub-contractor
performs for, or on behalf of, the insured.
For example, ABC Building hires Paul's Plumbing to replace the sink in Harry
Homeowner's kitchen. If Paul damages the cherry cabinets in Harry's kitchen while
doing his work, ABC Building may be considered legally liable for Paul's actions.
Occurrence Form - ANSWER In the occurrence form, insurance coverage is
triggered when an "occurrence" takes place during the policy period and within the
coverage territory. Essentially, determining the coverage trigger is a single-step
process.
, Step 1. Did the loss occur during the policy period? If the answer is yes, coverage is
triggered.
Claims-Made Form - ANSWER a claims-made form, coverage is triggered if an
"occurrence" takes place AFTER the retroactive date AND is REPORTED within the
policy period.
Supplemental Extended Reporting Period - ANSWER The SERP covers claims
arising from occurrences that took place after the retroactive date and before the end
of the policy term, regardless of when the claim is made.
Extended Reporting Period (ERP) - ANSWER An additional period (also called a
"tail") following the expiration of a claims-made policy, during which the expired
policy will cover claims first made for injury or damage that occurred on or after the
policy's retroactive date (if any) and before policy expiration.
within 60 days
Coverage A- Bodily injury and personal property damage - ANSWER How much
the insurer will pay if the insured is liable
Coverage B - Personal and Advertising Injury - ANSWER Personal and advertising
injury offenses include:
False arrest, detention, or imprisonment
Malicious prosecution
Wrongful eviction from wrongful entry into, or invasion of privacy of the right of
private occupancy
Libel or slander
Violation of privacy
Use of another's idea in the insured's "advertisement"
Infringement of copyright, trade dress, or slogan in the insured's "advertisement"
Coverage C: Medical Payments - ANSWER Insurer would cover medical expenses
due to bodily injury caused by an accident on the insured's premise or because of
the insured operations
Supplementary payments- Coverages A and B - ANSWER All claim-related
expenses incurred by the insurance company
The cost of bail bonds, up to $250
The cost of bonds to release attachments
All reasonable expenses incurred by the insured, at the insurer's request, including
actual loss of earnings up to $250 per day to the insured for time off from work
All court costs taxed against the insured in a suit
Payments for prejudgment interest, which is the amount of interest that accrues on a
judgment from the time of the accident or loss until the insurer makes payment or
offers to make payment
