CPCU 552 Flashcards – Module 3
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[h] CPCU 552 – Module 3
[q] Named insured under Commercial General Liability policy
[a] The named insured may be a(n):
Individual, trust.
Partnership, joint venture.
Corporation, LLC.
[q] Situations in which a named insured’s employees are not considered insureds
[a] Employees and volunteer workers are NOT insured in the case of:
Injury to the named insured (or partners), or to a co-employee or other volunteer worker.
Injury arising out of the worker’s providing or failing to provide healthcare services.
Property damage to property owned or in the care of named insured.
[q] CGL insureds other than the named insured and employees
[a] Other insureds under CGL policy:
Real estate manager for the named insured.
Legal representative of the insured’s property.
Newly acquired organizations.
[q] General Aggregate Limit of CGL policy
[a] The most the insurer will pay for the sum of damages under Coverage A, B, and C.
[q] Personal and Advertising Injury Limit of CGL policy
[a] The most the insurer will pay under Coverage B. Represents damages arising out of personal and advertising injury to any one person or organization.
[q] Each Occurrence Limit of CGL policy
[a] The most the insurer will pay for any one occurrence. Includes all damages under Coverage A and medical payments under Coverage C.
[q] CGL Coverage A Each Occurrence sublimits
[a] Sublimits:
Damage to premises rented to you limit.
Medical expense limit.
[q] Products-Completed Operations Aggregate Limit of CGL policy
[a] The most the insurer will pay under the products-completed operations hazard. If the policy does not contain this limit, the general aggregate limit applies.
[q] Bankruptcy condition
[a] A condition of the CGL policy that establishes that the bankruptcy of an insured will not relieve the insurer of any of its policy obligations.
[q] Legal Action Against Us condition
[a] A condition of the CGL policy that provides that no person can bring the insurer into any suit seeking damages from an insured.
[q] Premium Audit condition
[a] A condition of the CGL policy that requires the named insured to keep adequate records to permit correct calculation of the premium.
[q] Representations condition
[a] A condition of the CGL policy in which the insured agrees that statements in the declarations are accurate and complete.
[q] Separation of Insureds condition
[a] A condition of the CGL policy that indicates the insurance provided by the policy applies separately to each person insured.
[q] Transfer of Rights of Recovery Against Others to Us condition
[a] A condition of the CGL policy that indicates when the insured has rights to recover a claim from a third party it must transfer those rights to the insurer.
[q] When We Do Not Renew condition
[a] A condition of the CGL policy that requires insurer to give written notice of non-renewal to the first named insured at least 30 days before the expiration date of the policy.
[q] Other Insurance condition
[a] A condition of the CGL policy that applies when insured has other insurance that also covers the claim.
[q] Contribution by equal shares
[a] A method of allocating insurance proceeds under the Other Insurance condition of the CGL. Under this method of allocating proceeds, each insurer pays an equal amount until the claim is fully paid or until one insurer exhausts its limit.
[q] Contribution by limits
[a] A method of allocating insurance proceeds under the Other Insurance condition of the CGL. Under this method of allocating proceeds, each insurer pays that proportion of the claim that the insurer’s limit bears to the total of all applicable insurance.
[q] Duties in the Event of Occurrence, Offense, Claim or Suit condition
[a] A condition of the CGL policy that describes duties that must be performed by an insured. When a claim is brought against any insured, the insured must:
Immediately record the details of the claim.
Immediately forward to the insurer copies of any legal papers received.
Authorize the insurer to obtain legal records.
Cooperate in the investigation or settlement.
[q] Deductible Liability Insurance endorsement
[a] A deductible endorsement to the CGL policy that adds a deductible for bodily injury liability, property damage liability, or both.
[q] Employee Benefits Liability Coverage endorsement
[a] An additional coverage endorsement to the CGL policy that covers negligence in the administration of the insured’s employee benefits program.
[q] Electronic Data Liability endorsement
[a] An additional coverage endorsement to the CGL policy that provides limited coverage for loss of electronic data, as long as the loss results from physical injury to property.
[q] Additional Insured-Owners, Lessees, or Contractors-Scheduled Person or Organization endorsement
[a] An additional insureds endorsement to the CGL policy that is used for naming owners or lessees as insureds under CGL policies of organizations entering into contracts with those parties.
[q] Additional Insured-Owners, Lessees, or Contractors-Automatic Status endorsement
[a] An additional insureds endorsement to the CGL policy that provides coverage in construction agreements for an additional insured without having to name the additional insured.
[q] Products/Completed Operations Hazard endorsement
[a] An optional exclusion endorsement to the CGL policy that excludes injury or damage arising from products-completed operations hazard.
[q] Coverage C-Medical Payments endorsement
[a] An optional exclusion endorsement to the CGL policy that omits Coverage C coverage.
[q] Personal/Advertising Injury endorsement
[a] An optional exclusion endorsement to the CGL policy that omits Coverage B coverage.
[q] Nuclear Energy Liability endorsement
[a] A required exclusion endorsement to the CGL policy that eliminates coverage for bodily injury or property damage resulting from hazards of nuclear material.
[q] Employment-Related Practices endorsement
[a] A required exclusion endorsement to the CGL policy that eliminates coverage for injury arising out of any employment-related practice. This endorsement is required for CGL insureds with employment practices liability policies.
[q] Exclusion-Corporal Punishment endorsement
[a] A classification exclusion endorsement to the CGL policy that is intended for schools and excludes coverage for injury to a student.
[q] Misdelivery of Liquid Products Coverage endorsement
[a] A classification exclusion endorsement to the CGL policy that is intended for fuel oil dealers.
[q] Amendment of Limits of Insurance endorsement
[a] An amending limits endorsement to the CGL policy that replaces limits shown in the policy declarations.
[q] Designated Construction Project(s) General Aggregate Limit endorsement
[a] An amending limits endorsement to the CGL policy that provides a separate general aggregate limit for each construction project designated in the endorsement’s schedule.
[q] Designated Locations(s) General Aggregate Limit endorsement
[a] An amending limits endorsement to the CGL policy that provides a separate general aggregate limit for each location designated.
[q] Electronic Data Liability (EDL) Coverage Form
[a] A general liability coverage form that provides coverage for liability for loss of data caused by an electronic data incident. This coverage form provides much more broad coverage than the EDL endorsement to the CGL.
[q] Owners and contractors protective (OCP) liability insurance
[a] Liability insurance that can be purchased by an independent contractor to protect a property owner, or by a subcontractor to protect a general contractor .
[q] Owners and contractors protective (OCP) coverages
[a] OCP form provides coverage for losses from:
Operations performed for the named insured by a contractor at the location specified.
The insured’s own acts in connection with the general supervision of such operations.
[q] Railroad Protective Liability Coverage Form
[a] A liability policy designed specifically for insuring railroad owners. Serves essentially the same purpose as owners and contractors protective liability insurance.
[q] Liquor Liability Coverage Form
[a] A liability policy that covers losses resulting from the selling, serving, or furnishing of alcoholic beverages.
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