CIC - COMMERCIAL CASUALTY INSTITUTE EXAM AND PRACTICE EXAM, Exams of Nursing

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CIC - COMMERCIAL

CASUALTY INSTITUTE EXAM AND

PRACTICE EXAM 2024-2025 WITH

ACTUAL CORRECT QUESTIONS AND

VERIFIED DETAILED ANSWERS

|FREQUENTLY TESTED QUESTIONS

AND SOLUTIONS |ALREADY GRADED

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1.1) If you are designated in the declarations as an organization other than partnership, joint venture, or LLC, who else is an insured? You, your officers, and directors, but only with respect to the business Stockholders are also insureds, but only in respect to their duties as stockholders 1.1) If you are designated in the declarations as a trust, who else is an insured? You and your trustees but only in respect to the business 1.1) Aside from owners, officers, or managers, who else is automatically insureds as well? Volunteer Workers (while preforming duties related to the conduct of the business) and Employees (only in the scope of their employment) Real Estate Managers 1.1) Volunteer Workers and Employees are automatically insureds. Which type(s) of employees are NOT automatic insureds? Temporary or leased workers. They are excluded 1.1) Employees and volunteer workers are not considered automatic insureds when they cause...

• BI/PD to a named insured
• Injury to the family of a coworker
• BI/AI when providing professional health care services
• Property damage owned by, or in the CCC of a named insured 1.1) Newly acquired organizations are automatic insureds for what period of time? 90 days, excludes claims that occurred prior to acquisition of new organization. 1.1) If you are designated in the declarations as an individual, who else is an insured? You AND your spouse, but only with respect to the business 1.1) If you are designated in the declarations as a partnership or joint venture , who else is an insured? You are an insured, your members, partners, and their spouses are also insureds, but only with respect to the business 1.1) If you are designated in the declarations as an LLC, who else is an insured? You, your members, but only in respect to the business. Your managers are insureds, but only in respect to their duties as managers

1.2) What are the two promises found in paragraph 'a.' of the insuring agreement? Indemnity and Defense. (Pays sum the insured becomes legally obligated to pay as damages because of BI/PD and the defense costs) 1.2) Define BI and PD

• BI: sickness or disease, injury, or death
• PD: Physical injury or loss of use to tangible property 1.2) Where must the 'occurrence' take place for coverage to be active? The coverage territory 1.2) What is the coverage territory? US, it's territories and possessions, Puerto Rico and Canada 1.2) is international airspace part of the coverage territory? Yes, but only when flying between locations in the coverage territory 1.2) Under what circumstances is the coverage territory worldwide?
• Product is made or sold in territory described in coverage territory
• Temporary business travel

• Personal or advertising injury occurs on the web
• SUIT MUST BE BROUGHT IN THE US 1.2) Is previously known injury or damage a covered loss? No. 1.3) Does coverage A apply to expected or intended injury? No. Expected or intended injury is an exclusion from Coverage A 1.3) What is Contractual Liability? Arises from one party assuming responsibility of another party (Tenant - Landlord, Sub - GC, Lessee - Lessor) 1.3) What is considered an 'Insured Contract'? (LEASEPlus)
• Lease of Premises
• Easement or license agreement (unless within 50 feet of a railroad)
• An obligation to indemnify a municipality or required by ordinance except when working for a municipality)
• Sidetrack Agreement
• Elevator maintenance agreement
• Plus any other contract which the named insured assumes tort liability of another party to pay BI/PD to a third party 1.3) What is NOT considered an 'Insured Contract' (Three things)
• A railroad indemnity agreement
• Architect, engineer, or surveyor indemnity agreement
• Professional Liability for any of the above things 1.3) Is liquor liability excluded from Coverage A? Yes, however host liquor coverage is provided if the named insured is not in the business of producing, selling or distributing liquor/alcohol 1.3) Does Coverage A apply to Workers Comp Laws? No. Excluded 1.3) Is Employers Liability a provided coverage under Coverage A? No. Excluded 1.3) Pollution is excluded from Coverage A, however there are three exceptions. What are they?
• BI if sustained within a building and caused by smoke, fumes, vapor or soot originating from a equipment used to heat, cool, or dehumidify the building, or heat/cool water.
• If you are a contractor and the owner of the site/location has been added as an additional insured with

respect tothe contractors ongoing operations

• BI/PD resulting from heat, smoke or fumes from a hostile fire 1.3) If pollutants are brought to the site, and contractors are using them, then pollution is excluded. If pollutants were already on site and not being used, but a contractor spilled them, it would be covered. True. Idk. Needed to remember that. 1.3) Exclusions to Coverage A, that would be covered on other policy types are...
• Workers Compensation related claims
• Aircraft, Auto, and Watercraft
• Mobile Equipment (unless while in use for liability)
• Property (owned by named insured) 1.3.) Other exclusions to Coverage A... Typical exclusions, War, Pollution, 'Your Work' (Can be endorsed back), Liquor, Employers Liability, aircraft/auto/watercraft, etc. 1.4) What is Personal and Advertising Injury?
• False Arrest
• Malicious Persecution
• Wrongful Eviction
• Libel/Slander
• Advertising theft of ideas
• Copyright Infringement IN AN ADVERSTISMENT 1.4) What are the two promises in the Coverage B Insuring Agreement and when do they end? Indemnity and Defense, and the duty to defend ends when the limit of insurance is used to the maximum 1.4) Typical Exclusions to Coverage B...
• Pollution
• War
• Criminal Acts 1.4) Unique exclusions to Coverage B...
• Knowingly violating rights of another
• Material published with knowledge of falsity
• Material Published prior to policy period
• Wrong Description of Prices
• Copyright Infringement
• Insureds in Media type businesses (except false arrest, malicious prosecution, and wrongful eviction)
• Disclosure of confidential or personal information 1.5) Coverage C - Medical Payments, offers what two insuring promises?

• Promise to pay for medical expenses caused by an accident
• Payment made regardless of fault 1.5) Where/why would the injury have to occur for Coverage C to make medical payments?
• Accident occurred on premesis named insured owns/rents
• On ways next to premises the named insured owns/rents
• Or because of the named insureds operations
• Medical payments must be reasonable and within the limit of insurance 1.5) Examples of reasonable medical expenses Coverage C would pay for...
• First Aid administered at the time of accident
• Necessary medical, surgical, x-ray, and dental services
• Necessary ambulance, hospital, professional nursing and funeral services 1.5) Coverage C will not pay medical payments for...
• Named Insured
• Hired person
• Injury on a normally occupied premises (has to be a one-off)
• Workers Comp related injuries
• Athletics Activites
• Products/Completed Ops claims
• Coverage A exclusions apply 1.6)Do Supplementary payments reduce the limit of insurance? No. 1.6) Supplementary payments made by insurance company may include...(major ones)
• Expenses they incur
• Up to $250 for bail bonds
• Loss of earnings up to $250 per day for people that need to assist investigation
• Court taxes 1.6) When would an 'indemnitee' also be covered by the insureds policy in the event of a claim?
• Assumed liability in an insured contract
• Obligation to defend also assumed by the insured 1.7) Coverages A, B, and C all contribute toward the 'Limit of Insurance' except which part of Coverage A? Products-Completed Ops. It has its own limit. 1.7) What is the unendorsed 'Damage to Premises Rented to You' (Fire Legal Liability) limit? $100, 2.1) What is a Waiver of Subrogation?

Insured waives subrogation rights against another party in the event of a claim. Must be prior to a claim occurring. 2.1) What is the 'Transfer of Rights of Recovery against Others to Us' condition? States that if an insured has rights to recover all or part of any payment their insurer has made to them, then they give the insurer rights to recover those payments from the liable party. 2.2) List reasons why someone may want to be listed as Additional Insured on another's policy.

• Assure greater transfer of risk
• Grants direct rights under an insureds CGL Policy
• Protects Additional Insureds from Subrogation
• May provide higher total limits
• May reduce direct insurance costs 2.2) List reasons why a named insured may WANT to add others as additional insured. (Two kinds of relationships)
• Close Relationship (club and club members, church and church members, etc)
• Contractual Relationship (tenant-landlord, sub-GC, lessee-rental company, manufacturer-distributer) 2.2) What problems could adding additional named insureds cause the named insured?
• Diminution of Policy Limits (all named insureds share same limit)
• Unintended Coverage
• Defense Conflicts
• Compliance Problems 2.2) What problems could becoming an additional insured cause the additional insured?
• Loss of Defense Control
• Increased probability of disputes over coverage
• Limited Coverage under current forms
• Dependance on someone else's insurance 2.2) Would there be coverage under the Named Insured's policy, if an additional insured is solely negligent? (HINT: What is the exception) No. New exclusion excludes this to limit broader coverage. Contractual Liability may be an exception to this 2.3) Describe the purpose, coverage provided, and limitations, and exclusion of the 'Additional Insured - Owners, Lessee's or Contractors - Scheduled Persons or Organizations' CG 20 10 Endorsement
• Purpose: Used when owners, lessees, or contractors want to be listed as additional insured for liability
• Coverage Provided: CGL Policy
• Limitations: Only applies to the extent permitted by law
• Exclusion: Products/Completed Ops
• Contractual Liablity automatically included

2.3) Describe the purpose, coverage provided, limitations, and exclusion of the 'Additional Insured - Owners, Lessee's or Contractors - Completed Operations' CG 20 37 Endorsement

• Purpose: Used when owners, lessees, or contractors want to be listed as additional insured for completed ops
• Coverage Provided: CGL Policy
• Limitations: Only applies to the extent permitted by law -Exclusion: Ongoing operations
• Contractual Liability automatically included 2.3) Describe the purpose, coverage provided, and limitations of the 'Additional Insured - Managers or Lessors of Premises' CG 20 11 Endorsement
• Purpose: When lessors or property managers require they be added to a tenant's CGL policy
• Coverage: Provides LIABILITY coverage for the additional insured (lessor) and the named insured's policy (lessee) while they lease/rent/manage the premises
• Limitations: No coverage for structural alterations/new construction, only to the extent of the law 2.3) Describe the purpose, coverage provided, limitations of the 'Additional Insured - Designated Persons or Organizations' CG 20 26 endorsement.
• Purpose: Used to designate a person/org for ongoing operations or in relationship to the premises
• Coverage: Provides CGL coverage for ongoing operations
• Limitations: Only to the extent of the law 2.3) Describe the purpose, coverage provided, and limitations of the 'Additional Insured - Lessor if Leased Equipment' CG 20 28 endorsement. Purpose: Used when the lessor of leased equipment requires they be added to the named insured's CGL policy Coverage: Provides CGL coverage for the lessor while the named insured is leasing the equipment
• Limitations: Does not provide coverage for occurrences that take place after the lease expires 2.3) Describe what is necessary, the purpose, coverage provided, limitations, and TWO exclusions of the 'Additional Insured - Owners, Lessees or Contractors - Automatic Status When Required in a Written Construction Agreement With You' CG 20 33 Endorsement
• Required: Written Contract
• Coverage: Provides CGL coverage during ongoing operations for additional insured under named insured's policy
• Limitations: Only to the extent of the law and will not be broader than what is required
• Exclusions: Products/Completed Ops, Professional Services 2.3) What is the difference between CG 20 37 'Additional Insured - Automatic Status When Required by Written Construction Agreement With you' and CG 20 38 'Additional Insured - Automatic Status For Other Parties When Required by Construction Contract' CG 20 38 is very similar to CG 20 37, however it is more broad to include any other written contract for other subs/contractors who are liable in the contract. (Includes all affiliated parties)

2.3) Describe what is necessary, the purpose, coverage provided, limitations, and TWO exclusions of the 'Additional Insured - Owners, Lessees or Contractors - Automatic Status When Required in a Written Construction Agreement With You (Completed Operations)' CG 20 39 Endorsement Exact same as CG 20 33, but for completed operations 2.4) What is 'noncontributory' insurance? Insurance issued on the basis that it will not seek contribution from another insurance policy that apply to a covered loss on the same basis 2.4) When/why is primary noncontributory insurance used Subcontractors is a good example. GC's do not want their insurance to pick up liability that would be covered under the subcontractors insurance 3.1) What are the three types of Business Auto Coverage forms?

• BAC (Standard Business Auto Coverage)
• Motor Carrier Coverage Form (Transport Policy)
• Auto Dealers Coverage Form (Auto Dealers Policy) 3.1) Symbol 1* Any Auto (broadest possible symbol) 3.1) Symbol 2* Owned Autos Only (automatic coverage for newly acquired autos during policy period) 3.1) Symbol 3 Owned Private Passenger Autos Only (No definition of Passenger Auto) 3.1) Symbol 4 Owned Autos Other Than Private Passenger Autos Only (No definition of Passenger Auto) 3.1) Symbol 5 Owned Autos Subject to No Fault 3.1) Symbol 6 Owned Autos Subject to a Compulsory Uninsured Motorist Law 3.1) Symbol 7* Specifically Described Autos (also applies to trailers attached to specifically described autos) 3.1) Symbol 8* Hired Autos Only (Does Not Include autos leased, rented, borrowed, hired from employees or their family)

3.1) Symbol 9* Non-Owned Autos Only (Employee vehicles, or vehicles Named Insured does not own but are used in connection with the business) 3.1) Symbol 19 Mobile equipment subject to compulsory or financial responsibility or other motor vehicle insurance law only 3.1) Vehicles added via endorsement:

• Golf Cart and Low Speed Vehicles (CA 04 45)
• Snowmobiles (CA 20 21)
• Mobile Equipment (CA 20 15) 3.1) What is unique about symbol 7 and automatic coverage? Automatic coverage only applies if insurer already provides coverage for all owned autos (symbol 2) or auto replaces another with that same coverage AND notify the insurer within 30 days of purchase of new vehcile 3.1) Criteria for a trailer to be automatically covered as an auto?
• Gross weight of less than 3000 pounds
• Registered vehicle 3.1) Automatically 'covered' autos:
• Trailers that meet the correct criteria
• Mobile Equipment while being transported
• Any auto you do not own while used with permission from its owner as a temp replacement while a covered auto is undergoing maintenance 3.2) Who is considered an insured on a BAC Form?
• 'You'
• Anyone else while using a covered auto (with your permission) you own, lease, rent, or borrow EXCEPT... 3.2) Who is NOT an insured on a BAC Form?
• The owner from who you borrow a covered auto
• Your employee if the covered auto is owed by that employee
• Someone using that auto while in the business of auto repair
• Anyone other than your employees, members, partners, etc while moving property to/from an auto 3.2) When is DOC required? When the owner/ceo of a business is not driving a covered auto, and does not have a PAP (vacation rentals, borrowing neighbors cars, etc)

3.2) Which endorsement offers coverage to an employee as an insured who uses their own auto in the business operations? Employees as Insureds CA 99 33 endorsement 3.2) Which endorsement is needed to cover an employee who rents a vehicle for business operations? Employee Hired Autos CA 20 54 Endorsement 3.3) What is the insuring agreement in a BAP? (Three promises)

• Promise to pay legal obligations
• Promise to pay legal obligations of a covered pollution cost
• Right and Duty to Defend 3.3) What does Coverage extension 2b 'Out of State Coverage Extension' do? -Increases the limit of insurance for covered auto liability coverage to comply with financial responsibility laws -Meets state minimums automatically for other coverages required by law 3.3) What are the two major exclusions?
• Expected or intended injury
• Contractual Liability (unless it is an insured contract) 3.3) Is vehicle damage to a rented auto covered in a rental agreement contract? No. 3.4) What is Comprehensive Coverage? Any cause except collision with another object or overturn 3.4) What is Collision Coverage? With another object or overturn 3.4) What is Specified Cause of Loss? (Name them)
• Fire, lightening or explosion
• Theft
• Windstorm, hail, or earthquake
• Flood -Mischief or vandalism
• Sinking, burning, collision, or derailment, of any conveyance transporting the covered auto. 3.4) Other coverages provided by Section A of a BAP outside of cop/collision
• Towing and Labor
• Glass Breakage
• Transportation (Rental) Expenses
• Loss of Use Expenses

3.4) Exclusions to a BAP

• Nuclear, war ormilitary
• Professional or Organized Racing
• Loss confined to wear, tear, and freezing, mechanical or electrical breakdown
• Electronic Media and equipment unless fixed ($1000)
• Diminished Value of a rental after an accident 3.5) Coverage territory for a covered auto US, its territories and possessions, Puerto Rico, Canada, anywhere in the world if rental is less than 30 days (suit must be brought in US) 4.1) What are the five employer common law obligations?
• Reasonably safe workplace
• Reasonably safe tools
• Competent (safe and sober) employees
• Safety rules established and enforced
• Warm workers of any known dangers 4.1) Five purposes of Workers Compensation
• No fault system
• Prompt and Reasonable payment of benefits
• Establishes Sole Remedy (Comp is king, protects owners from further law suits)
• Predictability in determining cost of providing WC benefits
• Encourages loss prevention and promotes interest in safety 4.1) What are the two states in which workers comp is not mandatory for employers to provide? Texas and New Jersey. (Basically require it, but not technically) 4.1) List the three common funding methods used to comply with work comp law (three ways to obtain WC)
• Private Carriers
• State Funds
• Self-insurance 4.1) What are the monopolistic Work Comp states? (NOWW) North Dakota, Ohio, Washington, and Wyoming 4.1) What are the potential penalties for non-compliance with Work Comp law?
• Cease work orders
• Fines
• Misdemeanors
• Imprisonment

-Injured employees allowed to sue employer for WC benefits

• Employer loses common law defenses 4.1) Workers who would be exempt from Workers Comp are... (4 types)
• Domestic Employees (in a residenace)
• Agricultural or Farm Workers (veries by state)
• Real Estate Salespersons
• Casual Laborers 4.2) What are items 1, 2, and 3 in a Workers Comp dec page?

1. 'The Insured'
2. 'Policy Period'
3. Activation of Coverage 4.2) What is included/listed in section 3a and what does it do? States where operations occur. Activates coverage in those states (except monopolistic states) 4.2) What is included/listed in section 3b and what does it do? Employers liability. Lists limits ofemployers liability (100 each accident, 500 policy limit for disease, 100 each employee) 4.2) What is included/listed in section 3c and what does it do? States where operations began AFTER policy period began. Activates coverage there for the year, move to 3a after the policy period ends. 4.2) What is included/listed in section 3d and what does it do? Lists endorsements and schedules available. State specific endorsements, various optional endorsements 4.3) What are the four categories of benefits as required by WC Law?

• Medial Payments
• Compensation for Lost Wages
• Rehabilitation benefits
• Death or Survivorship benefits 4.4) Insured's duties if injury occurs under workers comp
• Provide for immediate medical and other services required by law
• Provide information on injury
• Promptly notify carrier
• Cooperate
• Do nothing to interfere with subrogation
• No voluntary payments Identify the Specific Rights & Responsibilities of the First Named Insured (Objective #1)

1- Cancel Policy 2- Receive Notice of Cancellation 3- Make Changes to Policy (with Insurer Consent) 4- Payment of Premiums 5- Payee for Returned Premium Compare and Contrast the Occurrence Form with the Claims Made Form, as to what activates coverage (Learning Objective #2) Occurrence Form:

• BI/PD must occur during the policy period
• P/Adv committed during policy period
• The policy in force when the injury or damage takes place is the one that responds

Claims Made Form:

• BI/PD must occur on or after the Retro Date shown in Declarations
• P/Adv must have been committed on or after the Retro Date
• AND, Claim must be made during the policy period or Extended Reporting Period
• NO COVERAGE if before the Retro Date Identify various Liability Exposures (8 total) in the CGL Coverage Form ( Part of Learning Objective #3) 1- Premises Liability 2- Business Operations Liability 3- Products Liability 4- Completed Operations Liability 5- Contractual Liability 6- Contingent Liability 7- Personal Injury Liability 8- Advertising Liability Premises Liability Applies to:
• Owners, Landlords, Tenants
• Arises out of the ownership, maintenance or use of the insured's premises

ONLY applies to designated

• Premises
• Project
• Operation Business Operations Liability Arises from activities involved in the operation of an organization, while the activity is being conducted Products Liability

• Arises out of the sale, distribution or manufacture of the product
• Coverage begins when the product has left the NI's premises and is no longer in the NI's possession Completed Operations Liability -Arises from activities involved in the operation of an organization, after the activity has been concluded
• When the business operation is completed
• Includes: work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed Contractual Liability
• Arises from one party assuming responsibility of another party
• Liability that arises from an "Insured Contract"
• Ex: Lease Agreements, Construction Contracts, etc... Contingent Liability
• Arises out of work performed for the NI by someone else

-Ex: Can protect a NI from negligent acts of an independent contractor Personal Injury Liability

• Arising from intentional torts (libel, slander, wrongful eviction)
• Applies to named offenses as defined by the CGL Advertising Liability
• Liability caused by harm such as misappropriation of Advertising Ideas, Style of Doing Business or Infringement of Copyright
• Applies to Named Offenses, in the course of advertising the NI's goods, products or services Who qualifies as an Insured under the CGL when the NI is an Individual? The Individual and Spouse Who qualifies as an Insured under the CGL when the NI is a Partnership of Joint Venture Members* Partners Spouses

*only with respect to conduct of the business of NI

Who qualifies as an Insured under the CGL when the NI is a LLC? Members Managers Who qualifies as an Insured under the CGL when the NI is a Corporation, Municipality or Other? Executive Officers & Directors Stockholders (financial interest protected) Who qualifies as an Insured under the CGL when the NI is a Trust? Trustees Others also included as Automatic Insureds under the CGL include?

• Employees
• Volunteer Workers
• Real Estate Managers
• Persons/ Organizations w/ proper temporary custody of the NI's property if the NI dies
• Legal Representative Employees & Volunteer Workers are NOT considered automatic insureds when they cause:
• BI or PAI to a NI, Partners, Members, Co-employees or other Volunteer workers
• Consequential Injury to the Family of a co-employee or volunteer worker
• 3rd Party action over the above
• BI or PAI arising out of providing/failure to provide health services
• Property Damage to property of the NI, any employees, volunteers, partners, memebers How does the CGL address coverage for Newly Formed/ Acquired Organizations?
• Qualifies as a NI if no other similar insurance is available
• Covered until the end of the policy or 90th day (whichever is earlier)
• Excludes prior BI or PD and PAI
• Does NOT include newly formed/acquired partnerships, JVs or LLCs True or False:

Spouses of any type of NI are automatically considered Insureds

False

Only true for Individuals as insureds, partnerships or joint ventures Yes or No:

A partnership is the only named insured listed on a CGL policy. A partner of a partnerships buys a building in his own name, during the policy period. A BI loss occurs at that building and the partner is sued for damages.

Does the Partner have insured status under the Partnership's CGL? NO Yes or No:

A nurse at a rehab center administers the wrong medication to a patient, resulting in injury. A suit is filed against the nurse for damages.

Does the nurse have insured status under the rehab center's CGL? NO

No coverage for providing or failure to provide health services A named insured acquires a corporation 30 days prior to the expiration of the NI's CGL policy. Which of the following is a accurate statement?

A) The newly acquired corp. automatically qualifies as a named insured, but only until the end of the policy period

B) Newly Acquired corporations always have automatic insured status for 90 Days

C) No Coverage at all for the newly acquired corp. unless added as a named insured. A) The newly acquired corp. automatically qualifies as a named insured, but only until the end of the policy period

-- the expiration date is the lesser of 90 days True or False:

A newly formed Joint Venture is an Automatic Insured False

Joint Ventures, Partnerships or LLCs are all excluded as Automatic Insureds

Under the CGL - Coverage A, BI/PD, what are the 2 promises made in the insuring Agreement? 1 - Legal Liability -- Pays sums, to which coverage applies and the Insured becomes legally liable to pay

2 - Defense -- Right and Duty to Defend the Insured (but if coverage does not apply, no defense) "Bodily Injury" - Definition? Bodily Injury Sickness or Disease Death "Property Damage" - definition?

• physical injury to tangible property
• loss of use Electronic Data ( is/ is not) considered tangible property Is NOT In the CGL the company's Duty to Defend ends when? The Limit of Insurance has been exhausted under Coverage A,B or C Coverage in the CGL applies only to ___________or____________ caused by ____________, inside the _______ _______, and must take place during the _______ ______.
• BI or PD
• an Occurrence
• Coverage Territory
• Policy Period "Coverage Territory" is defined in the CGL as...
• US (territories and possessions), Puerto Rico & Canada
• International Waters/ Airspace, between and above
• Worldwide with Limitations Name the conditions in which you would get worldwide coverage by the CGL
• Products, made or sold in the Coverage Territory (CT)
• Temporary business travel of a resident of the CT
• PAI, if it takes place thru the internet
• As long as suit is brought in the CT - OR - there is agreement to settle the claim

What are the 6 Requirements must be met for Coverage-A (BI/PD) of the CGL to apply? 1- Must qualify as an insured

2- Must meet the definitions of: BI, PD, Occurrence and Coverage Territory

3- BI or PD must be caused by an Occurrence

4- BI or PD must take place within the Coverage Territory

5- BI or PD must occur during the Policy Period

6- Suject to the CGL's Terms and Conditions T/F

Physical Injury to tangible property includes all resulting loss of use of that property True T/F

Loss of Use of tangible property that is not physically injured is within the definition of Property Damage False T/F

Electronic Data is considered tangible property False The NI manufactures and sells kitchen appliances in the US. A customer living in Mexico is injured while using an appliance manufactured by the insured.

What circumstances would allow this claim to be covered? Suit must be filed in the US or Coverage Territory The NI, located in New York, is in the fashion business. Do the following employees have insured status while conducting business for the NI?

1 - (Yes or No) - A salesperson travels to Europe on business for 10 days?

2 - (Yes or No) - An employee permanently resides in France to conduct the European Sales business for the NI?

1- Yes (Temporary Business Travel)

2- NO (Must be a Resident or Coverage Territory for Coverage to apply) ____________ _____________ arises from one party assuming responsibility for another Contractual Liability What is included as an "Insured Contract"? "LEASE Plus"

L-ease, of premises E-asement or License Agreement A-n Obligation to indemnify a municipality S-idetrack Agreement E-levator Maintenance Agreement PLUS - Torts The definition of an "employee" includes a ______ ______ but not a _______ _______ Leased Worker but not a Volunteer Worker Name some circumstances when the Pollution Exclusion in the CGL does not apply? BI/PD resulting from...

• Hostile Fire
• related to building heating equipment
• premises where the owner is added as AI under the contractor's CGL policy
• accidental release of operating fuels of mobile equipment
• release of gas/vapors from materials brought into the building What are some exceptions to the Aircraft, Auto or Watercraft Exclusion in the CGL?
• watercraft, ashore, on premises
• Non-Owned Watercraft less than 26 feet, not carrying for a charge
• Parking of autos
• Liability assumed under an Insured Contract (LEASE Plus)
• BI or PD arising out of operation of machinery or equipment List the circumstances in which the Damage To Property-Exclusion applies

• Property Owned, rented or occupied by the NI
• abandoned premises
• property loaned to a NI
• damage to property in CCC of a NI
• that particular part of real property being worked on, that is damaged during operations
• Faulty workmanship Yes or No?

All contracts signed by the NI's are considered "Insured Contracts" NO Yes or No?

All Liability assumed in a lease of premises are considered "Insured Contracts" NO Cannot assume ALL Liability Yes or No?

That part of a copy machine rental contract under which the NI assumes the tort liability of another party for injury to a 3rd party is an Insured Contract Yes A NI serving wine at an office party for their clients is an example of what exposure? Host Liquor Liability Covered or Excluded?

Chemicals leak from a storage tank at the NI's location causing damage to a neighboring business Excluded (premises) Covered or Excluded?

A furnace at a hotel malfunctions, emitting fumes causing several guests to become ill Covered (has to do with the heating) Covered or Excluded?

The NI is hired to construct a swimming pool at a client's estate. The bulldozer used to clear the land overturns causing diesel fuel to flow out of its tank and damages the neighbors property. Covered - released from mobile equipment and was necessary to the operation of the equipment

Covered or Excluded?

Waste being treated at a manufacturing plant escapes causing property damage to several nearby businesses Excluded

looks like they are 'in the business of' Covered or Excluded?

A client is injured at a business function on the insured's owned watercraft Excluded

can't be owned Covered or Excluded?

A backhoe causes damage to underground utilities at a job site Covered Covered or Excluded?

An employee, operating a backhoe, backs into the NI's storage barn causing property damage Excluded

can't cause property damage to property you own, rent, occupy Covered or Excluded?

A balcony constructed by the NI collapses causing BI to those standing on it Covered Does the following intentional tort act most qualify as PAI? Yes or No?

The NI's employee sexually harasses a customer NO (expected or Intended injury) Does the following intentional tort act most qualify as PAI? Yes or No?

The NI orders the eviction of a tenant without proper notice NO - wrongful eviction

Does the following intentional tort act most qualify as PAI? Yes or No?

The NI's website contains material that disparages a person's or organization's goods, products or services? YES- Libel Does the following intentional tort act most qualify as PAI? Yes or No?

The NI's employee wrongfully detains a customer for shoplifting Yes - false arrest or detention Covered or Excluded under Coverage B?

The NI is sued for libel due to comments posted on the company's electronic bulletin board Excluded Covered or Excluded under Coverage B?

A PAI claim against the NI for liability assumed under a contract or agreement excluded Covered or Excluded under Coverage B?

A suit filed against the NI for failure for their product to perform as advertised Excluded Covered or Excluded under Coverage B?

The wrong price for a product is advertised on the named insured's website, an the NI is forced to honer the price at a substantial loss Excluded Covered or Excluded under Coverage B?

A suit is filed against the NI for PAI arising out of a disclosure of a client's health info Excluded Reasons for requesting Additional Insured (AI) status?

• greater safety in risk transfer
• grants direct rights under NI's CGL policy
• protection from subrogation

• may provide higher limits
• may reduce insurance costs what types of problems could arise for the NI when naming others as AI?
• diminution of policy limits
• unintended coverage provided
• defense conflicts
• compliance problems what type of problems could arise for the AI when being added as AI?
• loss of defense control
• increased probability of coverage disputes
• limited coverage under current forms
• dependent on someone else's insurance Which Liability exposures are covered by the BAC Form?
• Owned
• Non-Owned
• Hired or Borrowed Which Physical Damage exposures are covered by the BAC Form?
• Owned
• Hired or Borrowd An "Auto" is defined as...
• Land motor vehicle, trailer, semi-trailer, designed for travel on public roads
• compulsory to financial responsibility or law
• does not include mobile equipment while that equipment is being used, but will qualify when that equipment is moving down the road Symbol 1
• any auto
• best, broadest symbol Symbol 2
• Owned Autos Only
• liability, med pay, UM, Phys Dam
• includes non-owned trailers, while attached to owned autos Symbol 3

• owned private passenger autos only
• liability, med pay, UM, Phys Dam...and towing/ labor Symbol 4
• owned autos other than pvt. passenger autos
• liability, med pay, UM, Phys Dam Symbol 5
• owned autos subject to no-fault
• autos licensed or garaged in a no-fault state Symbol 6
• owned autos subject to a compulsory UM law
• when an owned auto cannot reject UM by law Symbol 7
• Scheduled/Specifically described Autos Only
• only 30 days coverage for newly acquired autos Symbol 8
• hired autos only
• for autos the insured hires, rents or borrows
• but not if from employees, partners or members or members of their households Symbol 9
• non-owned autos only
• includes autos of employees while used in conjunction with the NI's business operations Symbol 10 covered auto designation symbol description and be negotiated to fit Symbol 19 Mobile Equipment Subject to Compulsory or Financial Responsibility or other Motor Vehicle Insurance Law Only The NI has a BAP with Symbol 1 (Liability) and Symbol 2 (Phys Dam)...what will happen if a new auto is purchased? Liability and Phys Dam will both automatically apply until the end of the policy period What are the two promises the insurer makes?

1. Indemnity 2.Defense

A Commercial General Liability Policy may be written as a

1. Monoline Policy
2. Multi-Line Policy 5 different forms of business
3. Individual
4. Partnership or Joint Venture
5. Limited Liability Company
6. Organization, including, but not limited to corporations
7. Trust The 5 sections to a CGL Form Section I - Coverages Coverage A - Bodily Injury and Property Damage Coverage B - Personal and Advertising Injury Coverage C - Medical Payments Section II - Who is an Insured? Section III - Limits of Insurance Section IV - CGL Conditions Section V - Definitions Coverage C is more for On the premises and around the premises

Operations- away from the premises Premises Liability owners, landlords, and tenants and arises out of the ownership, maintenance, or use of the insured's premises

Ex. customer slips and falls on NI's premises Business Operations Liability Activates involved in the operation of an organization including service repair activities usually done on the premises of others, while the activity is being conducted

STILL IN THE HANDS OF THE INSUREDS

Ex. contractor accidentally cuts utility lines while digging a trench Products Liability Arises out of the sale, distribution or manufacture of the named insured's product