CPCU 552 Flashcards – Module 2
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[h] CPCU 552 – Module 2
[q] Commercial General Liability Coverage Form
[a] An ISO coverage form that is widely used to provide liability insurance in the United States.
[q] Commercial General Liability Coverage Form broad categories of coverage
[a] Broad categories:
Bodily injury and property damage liability.
Personal and advertising injury liability.
[q] Commercial General Liability Coverage Form – Coverage A
[a] Bodily Injury and Property Damage Liability coverage. This is the primary type of liability loss covered under the Commercial General Liability Coverage Form.
[q] Premises and Operations coverage
[a] Coverage under the Commercial General Liability Coverage Form (Coverage A) that covers accidents on the insured’s premises or arising from ongoing operations.
[q] Products and Completed Operations coverage
[a] Coverage under the Commercial General Liability Coverage Form (Coverage A) that covers accidents arising out of products sold or arising out of completed work.
[q] Commercial General Liability Coverage Form – Coverage B
[a] Personal and Advertising Injury Liability coverage. Covers the insured’s liability for personal and advertising injury, and includes coverage for libel, slander, and copyright infringement in advertisements.
[q] Commercial General Liability Coverage Form – Coverage C
[a] Medical Payments coverage. Pays medical expenses of others without having to prove the insured was legally liable.
[q] Declarations page of the Commercial General Liability Coverage Form
[a] Page includes:
The insurer’s and producer’s names.
The insured’s name and mailing address.
The policy inception and expiration date.
A promise to provide coverage.
The limit of insurance.
A description of the insured’s business.
Rating and premium auditing information.
A list of endorsements.
[q] CGL – Coverage A insuring agreement
[a] A section of Coverage A of the CGL policy that contains the insurer’s promise to pay damages and defend the insured.
[q] Bodily injury
[a] A category of damages that includes damages for care, loss of services, or death resulting at any time from the bodily injury.
[q] Property damage
[a] A category of damages that includes physical injury to tangible property and loss of use of tangible property that is not physically injured.
[q] Special damages
[a] A type of compensatory damages. Awards money to pay for identifiable damages, such as medical expenses.
[q] General damages
[a] A type of compensatory damages designed to compensate a victim for pain and suffering.
[q] Punitive damages
[a] Damages awarded to a victim that are designed to punish a wrongdoer when there is intent, malice, or fraud.
[q] Coverage territory of CGL Coverage A
[a] Occurrence must generally take place in the U.S., Puerto Rico, and Canada.
[q] Duty to defend
[a] Under the CGL, the insurer must defend its insured whenever a claimant alleges a wrongful act or omission. This duty exists even if the allegations are later proven groundless, false, or fraudulent.
[q] Expected or Intended Injury exclusion
[a] A CGL Coverage A general exclusion that indicates no coverage will apply if the insured intentionally injured the claimant.
[q] Contractual Liability exclusion
[a] A CGL Coverage A general exclusion that indicates no coverage will apply with respect to liability that is assumed by the insured under a contract.
[q] Liquor Liability exclusion
[a] A CGL Coverage A general exclusion that indicates coverage for liquor liability will not apply if the insured is in the alcoholic beverage business.
[q] Workers Compensation and Employers Liability exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage for obligations of the insured under workers compensation, disability benefits, or similar law.
[q] Pollution exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage for pollution liability claims related to the insured’s premises and operations.
[q] War exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage resulting from war and other warlike actions.
[q] Aircraft, Auto, or Watercraft exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage for ownership, maintenance, or use of various aircraft, auto, or watercraft.
[q] Mobile Equipment exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage for:
Transportation of mobile equipment by an auto owned or operated by an insured.
Use of mobile equipment for racing or demolition contest.
[q] Damage to Property exclusion
[a] A CGL Coverage A general exclusion that eliminates coverage for damage to:
Property owned or rented by the insured.
A premises the insured has sold, given away, or abandoned.
Property loaned to the insured.
Property in the care of an insured.
The part of real property on which work is being done by the insured.
[q] CGL Coverage A exclusions relating to an insured’s product or work
[a] Exclusions:
Damage to Your Product.
Damage to Your Work.
Damage to Impaired Property or Property not Physically Injured.
Recall of Products, Work or Impaired Property.
[q] CGL Coverage B insuring agreement
[a] The insuring agreement of the CGL that responds to claims for personal and advertising injury.
[q] CGL Coverage B coverage territory
[a] Personal and advertising injury coverage territory includes worldwide coverage for offenses taking place through the Internet or similar electronic means of communication.
[q] Knowing Violation of Rights of Another exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury by an insured who had knowledge the act would violate the rights of another person.
[q] Material Published With Knowledge of Falsity exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of publication of material with knowledge of its falsity.
[q] Material Published Prior to Policy Period exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury resulting from any advertising materials that were published prior to the policy period.
[q] Criminal Acts exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of a criminal act committed by or at the direction of the insured.
[q] Contractual Liability exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury for which the insured has assumed liability in a contract or agreement.
[q] Breach of Contract exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of a breach of contract.
[q] Quality or Performance of Goods – Failure to Conform to Statements exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of the failure of goods to conform to quality described in advertisement.
[q] Wrong Description of Prices exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for losses arising out of wrong descriptions of the price of goods.
[q] Insureds in Media and Internet-Type Business exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury committed by an insured whose business is in advertising, broadcasting, publishing, or designing websites.
[q] Electronic Chatrooms or Bulletin Boards exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of an electronic chatroom or bulletin board the insured owns.
[q] Unauthorized Use of Another’s Name or Product exclusion
[a] A CGL Coverage B general exclusion that eliminates coverage for injury arising out of the unauthorized use of another organization’s name or product.
[q] CGL Coverage C insuring agreement
[a] The insuring agreement of the CGL that covers medical expenses for bodily injury caused by an accident. Medical expenses must be incurred and reported to the insurer within one year after the date of the accident.
[q] CGL Coverage C exclusions
[a] Medical payments coverage does not apply to bodily injury to:
Any insured, other than a volunteer worker.
Anyone hired to do work for an insured.
An individual injured on that part of the insured’s premises they normally occupy.
A person injured while taking part in any physical exercises or athletic contests.
[q] Supplementary payments
[a] Specific items the insurer will pay in addition to damages. These items are payable in addition to the limits of insurance, and include:
Fees for attorneys, witnesses, police reports.
Bail bonds.
Loss of earnings, up to $250 per day.
Court costs.
Prejudgment or post-judgment interest.
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