More Chapter 2

Question 1

Identify the five sections of the IBC 2100

Answer 1

Coverages
What is an insured
Limits of insurance
Commercial general liability conditions
Definitions

Question 2

What are the two key coverages included under the definition of property damage

Answer 2

1. Physical injury to property damage, including loss of use
2. Loss of use of tangible property that is not physically injured

Question 3

Identify three types of liability that may be faced by business owners

Answer 3

1. Tort liability
2. Certain contractual liabilities
3. Statutory liability

Question 4

Define occurance

Answer 4

An accident, including continuous or repeated exposure to substantially the same general harmful conditions

Question 5

Explain the “completed operations endorsement”

Answer 5

Excludes coverage only for that particular part of the insureds work responsible for a loss, not all of it

Question 6

Define personal injury

Question 7

Identify 5 coverages provided under personal and advertising injury

Answer 7

1. False arrest, detention, imprisonment
2. Malicious prosecution
3. Wrongful entry, or eviction of a person from a room, dwelling, or premises a person occupies
4. Oral or written publication of material that slanders a person or organization
5. Oral or written publication that violates a persons right of privacy

Question 8

Identity two conditions to be present in malicious prosecution

Answer 8

1. The complainant was arrested and later released
2. Evidence revealed that person making the complaint did not have honest belief that a crime was committed, and was guided by improper motives (to harass or humiliate the victim)

Question 9

Identify three reasons other than good-will, to include no fault medical payments in the IBC 2100

Answer 9

1. Chances of permanent disability is greatly reduced when immediate medical attention is obtained
2. Potential for claims alleging negligence is reduced
3. A legal confrontation with victim over expense is avoided

Question 10

Identify the two ways in which tenant legal liability to the owner can be established

Answer 10

1. Tort liability
2. Contractual liability

Question 11

Identify three exclusions to coverages A, C, and D

Answer 11

1. Asbestos
2. Fungi or spores
3. Nuclear energy liability

Question 12

Identify four instances where pollution damage is excluded

Answer 12

1. On the insureds premises
2. At any waste disposal site used for or by the insured or others
3. While being transported, handled, stored, treated, disposed of or processed by, or for an insured
4. At any work site, while brought on to the site by the insured

Question 13

Identify four additional claims related expenses that are addressed under supplementary payments

Answer 13

1. Insurers cost
2. The cost of bonds to release attachments
3. Reasonable expenses incurred by the insured at the insurers request to assist the insurer in investigation and defence of the claims
4. All costs taxed against the insured and any interest accruing after entry of judgement upon that part of the judgement which is within the applicable limit of insurance

Question 14

Identify the two kinds of costs addressed under “cost taxed against the insured”

Answer 14

Court costs
Interest on amount of the judgement

Question 15

Identify factors to be considered when calculating the premium for products liability exposure

Answer 15

1. Types of products sold
2. Sales volume
3. Territories in which products are sold

Question 16

Identify factors to be considered when calculating the premium for premises operations exposure

Answer 16

1. Square footage of the building or portion occupied
2. Occupancy
3. Payroll
4. Location

Question 17

Identify factors to be considered when calculating the premium for completed operations exposure

Answer 17

1. Type of work preformed
2. Gross receipts