Unit 6 General Liability Insurance
A $250,000 claim is filed against a lawyer with a policy limit of $250,000. The firm defending the attorney charges $50,000 in defense costs. The Lawyers Liability policy will pay $_______.
$200,000. Defense costs are subtracted first, and then the claim is paid from the remaining balance of the policy limits
Two form available for Commercial General Liability policy are:
1. Occurrence Policy- bodily injury or property damage that occurs within policy period and is reported within the policy period or any time after with no limit on time 2. Claims-made Policy- covers bodily injury or property damage that occurs within the policy period and is reported within the policy period or 60 days following the policy expiration. (60 day policy reporting period is known as the Basic Extended Reported Period or BERP).
Two Liabilty Exposures covered with General Liability Insurance:
1. Premises and Operations (covers the liability arising out of the business location or business activities at any of the insured's business locations.) 2. Products and Completed Operations (covers liabilities resulting from products away from premises and products or operations completed at one site if work is being performed at another site
True or False- A Commercial General Liability policy provides protection for personal property
False. Physical injury to tangible property, including loss of use of that property. It does not include intangible property.
The agreement that states that continuation of both known and unknown losses is not covered under a CGL is called ________________.
Known Loss Rule
A customer gets ill after eating in a restaurant. Which exposure covers her medical bills?
Premises and Operations
Joe slips and falls in a hardware store. Which exposure covers his injuries? ___________ and _______________.
Premises and Operations
A child swallows a small toy he received as part of his meal package. Which exposure covers this injury?
Products and Completed Operations
An insured can convert a Claims-made policy to an Occurrence policy by selecting _______________ or SERP.
Supplemental Extended Reporting Period
True or False- A Commercial General Liability policy provides liability protection for completed products and general operations.
True.
A liability may be _______ (a person being injured by unsafe conditions); or the liability may be _________ (actions of an independent contractor). The liability may also be _____________ under a contract.
direct; indirect; assumed
Under a CGL policy, Medical Payment will pay medical bills for injuries incurred within ________ year(s) of an accident.
one. coverage C (Medical Payments) covers medical expenses incurred within one year of the accident)
For any CGL claim to cover a claim, it must occur within the ______ _______.
policy period.
Commercial General Liability Policy provides coverge for
liability hazards found in business pursuits. This includes both general operations and the completed products of the business
Personal Injury coverage provides coverage for _________, ______ and ________.
libel, slander, and wrongful eviction
What are the six parts of a Commercial General Liability?
-Declarations Page -Common Conditions -Occurrence or Claims-Made Form -Nuclear Energy Liability Exclusion Endorsement -Pollution Exclusion Endorsement -Other Endorsements
"Known Loss Rule"
if the insured knew that bodily injury or property damage occurred before Claimed General Liability effective date, then any known or unknown continuation of that damage is considered a known loss.
