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Arkansas Property and Casualty Exam
Premises and Operations Exposure - answerAn insured business conducts its operations both at its own premises and elsewhere. For example, an accountant conducts operations at his or her office and also away from the office when visiting clients, the bank, the post office, networking events, etc. CGL coverage is provided for the insured's legal liability for bodily injury or property damage arising out of the insured's premises or the insured's operations. Products Exposure - answerA product, as defined by the CGL policy, means any goods or products that are manufactured, sold, handled, distributed, or disposed by the insured Goods and merchandise are not typically considered a product until after their sale by the insured and once they leave the insured's premises. man who suffers an eye injury after the pen he's using explodes. Exposure leave a business vulnerable to legal liability for defects in product design or manufacture. Also leaves a business exposed to liability for the failure to warn or explain with respect to its products. Completed Operations Exposure - answerWhen a business performs services or work, such as installation, construction, or repair, it's vulnerable to lawsuits and claims resulting from improper or defective workmanship. This exposure typically begins after the insured's operations have been completed and the insured leaves the job site. A cabinetmaker who builds kitchen cabinets and, a week after he installs them in a customer's kitchen, one of the cabinets falls off the wall and injures the customer's family dog, and Contingent liability exposure - answerThe liability of others arises when a business is held legally liable for the actions, or failures to act, of other parties, such as sub- contractors or independent contractors. Owners and Contractors Protective (OCP) liability, arises out of the work an independent contractor or sub-contractor performs for, or on behalf of, the insured. For example, ABC Building hires Paul's Plumbing to replace the sink in Harry Homeowner's kitchen. If Paul damages the cherry cabinets in Harry's kitchen while doing his work, ABC Building may be considered legally liable for Paul's actions.
Occurrence Form - answerIn the occurrence form, insurance coverage is triggered when an "occurrence" takes place during the policy period and within the coverage territory. Essentially, determining the coverage trigger is a single-step process. Step 1. Did the loss occur during the policy period? If the answer is yes, coverage is triggered. Claims-Made Form - answera claims-made form, coverage is triggered if an "occurrence" takes place AFTER the retroactive date AND is REPORTED within the policy period. Supplemental Extended Reporting Period - answerThe SERP covers claims arising from occurrences that took place after the retroactive date and before the end of the policy term, regardless of when the claim is made. Extended Reporting Period (ERP) - answerAn additional period (also called a "tail") following the expiration of a claims-made policy, during which the expired policy will cover claims first made for injury or damage that occurred on or after the policy's retroactive date (if any) and before policy expiration. within 60 days Coverage A- Bodily injury and personal property damage - answerHow much the insurer will pay if the insured is liable Coverage B - Personal and Advertising Injury - answerPersonal and advertising injury offenses include: False arrest, detention, or imprisonment Malicious prosecution Wrongful eviction from wrongful entry into, or invasion of privacy of the right of private occupancy Libel or slander Violation of privacy Use of another's idea in the insured's "advertisement" Infringement of copyright, trade dress, or slogan in the insured's "advertisement" Coverage C: Medical Payments - answerInsurer would cover medical expenses due to bodily injury caused by an accident on the insured's premise or because of the insured operations Supplementary payments- Coverages A and B - answerAll claim-related expenses incurred by the insurance company The cost of bail bonds, up to $ The cost of bonds to release attachments
Easement Agreement - Liability assumed under the right to use someone's land or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad. Agreement to Indemnify the Municipality - An obligation to indemnify a municipality, except in connection with work for a municipality. Sidetrack Agreement (Hold Harmless Agreement) - Contract between a railroad and a business the railroad may service. Under this agreement, the business holds the railroad harmless if an accident occurs while the railroad is using the sidetrack to deliver goods to the business. Elevator Maintenance Agreement - A contract agreement where the elevator maintenance company assumes the liability pertaining to the operation of the elevator from the business or building owner where the elevator operates.
- In addition to these five contracts, any other contract or agreement pertaining to the insured's business under which one assumes the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Business Auto Coverage Form - answerThe Business Auto Coverage Form is used to cover owned, leased, hired, rented, or borrowed private passenger autos, trucks, trailers, and semi-trailers that are owned or used by the insured. provides liability coverage for trailers being towed by a covered vehicle, but it does not provide automatic coverage for physical damage to trailers. It also Covers non-owned vehicles, including autos owned by employees while being used in the business. Section 1 - Covered Autos - answerSymbol 1 - Any Auto, if it is used in the insured business, regardless of ownership Symbol 2 - Owned Autos Only, whether or not specifically listed on the policy Symbol 3 - Owned Private Passenger Autos Only; a business may wish to provide insurance differently for its cars than for its dump trucks or vehicles used for delivery Symbol 4 - Owned Autos Other Than Private Passenger Autos Only Symbol 5 - Owned Autos Subject to No Fault Laws Symbol 6 - Owned Autos Subject to a Compulsory Uninsured Motorist Law Symbol 7 - Specifically described vehicles listed on the declarations page Symbol 8 - Hired Autos Only, which are those the insured leases, hires, rents or borrows, except any auto the insured leases, hires, rents, or borrows from an employee. These vehicles may not be owned by the insured. Symbol 9 - Non-owned Autos Only, which are those the insured does not own, lease, hire, rent or borrow, and are used in connection with the insured's business. This includes autos owned by an employee of the insured or a member of the employee's household. Symbol 19 - Mobile Equipment Subject to Compulsory or Financial Responsibility or Other Vehicle Insurance Law, which triggers protection for autos that are otherwise
described as "mobile equipment", but are required to be licensed and registered to be operated on public roadways. This symbol is necessary since mobile equipment is excluded from the definition of "auto" under the business auto policy. Section 2: Liability Coverage - answerCoverage is provided for bodily injury or property damage caused by an accident for which the insured is legally responsible. The accident must occur within the policy territory, during the policy period, and result from the ownership, maintenance, or use of a covered auto. Section 3: Physical Damage - answerComprehensive - Coverage is provided for physical damage to a covered auto or its equipment on an open perils basis. The single peril excluded is collision, which is a vehicle's impact with another object or its overturn. Specified Causes of Loss - Coverage includes fire, lightning, or explosion; theft; windstorm, hail, or earthquake; flood; mischief or vandalism; and the sinking, burning, collision or derailment of a conveyance transporting the covered vehicle. If coverage for other perils is desired, Comprehensive should be purchased. Collision - Coverage is provided for the covered auto's impact with another object or its overturn. Physical damage coverage excludes: - answerNuclear hazard War Racing Wear and tear, freezing, electrical breakdown Blow out damage to tires loss to any tapes, radar, sound equipment not used for sound production Section 4: Conditions - answerLoss Conditions - Appraisal, duties in the event of an accident, legal action against the insurer, loss payment, and transfer of rights of recovery. General Conditions - Bankruptcy; concealment, misrepresentation, or fraud; liberalization; other insurance; premium audit; policy period, coverage territory; no benefit to bailee for physical damage. Garage Coverage Form - answerThe Garage Coverage Form is designed to provide automobile liability and physical damage coverage, as well as general liability insurance for businesses that are engaged in the sale, service, parking, or storage of automobiles. Eligible businesses include automobile vehicle dealerships, sales agencies, repair shops, service stations, storage garages, and public parking places. Symbol 29 - answerNon-owned autos used in a garage business symbol 30 - answer"Autos" left with the insured for service, repair, storage, or safekeeping
Motor Carrier Coverage Form - answerThe Motor Carrier Coverage Form provides coverage for business exposures due to the transportation of goods owned by others for hire AND transporting their own property. coverage provided, and the definition of insured, is based on the written agreements between the carrier/shipper and its customers rather than on government regulation. What are the two conditions for the motor carrier coverage form? - answerThe first condition is contained in the Other Insurance Clause. The insurance of the insured trucker or motor carrier is primary, and the hired vehicle's coverage is excess. However, the insured's coverage will be excess if the insured leases a vehicle to another motor carrier. The second condition is called Trailer Interchange Coverage. Trailer interchange coverage is physical damage coverage (comprehensive, specified causes of loss, and/or collision coverage) for non-owned trailers and their equipment if they sustain a loss and the insured is legally responsible for the damage. The Endorsement for Motor Carrier Policies of Insurance for Public Liability (Form MCS-
- answerThis endorsement provides evidence of financial responsibility, on behalf of the motor carrier, to the Interstate Commerce Commission (ICC). The form must be carried in the cabin of the vehicle and must show: The names of the motor carrier and the insurance company The policy number and policy dates Whether the insurance providing coverage is primary or excess The limits of liability provided by the policy Burglary - answerThe taking of property from inside the premises or a locked safe or vault by a person who commits forcible entry into, or exit from, the property of another while trespassing. Robbery - answerThe taking of property from the care and custody of a person by one who has: Caused or threatened bodily harm to that person Committed an obviously unlawful act witnessed by that person Theft - answerThe broadest of the crime coverages, theft includes any act of stealing. Example: A shoplifter steals items while a store is open. Coverage includes losses by burglary or robbery. Mysterious Disappearance - answerThe loss of property when the cause of loss is not known. This is NOT theft, burglary, or robbery. Messenger - answerThe insured, or any of the insured's partners or employees, while having care and custody of covered property while outside the premises.
Custodian - answerThe insured or any of the insured's partners or employees, while having care and custody of covered property while inside the premises, excluding any person while acting as a watchperson or janitor. Watchperson - answerAny person the insured retains specifically for the purpose of having care and custody of property inside the premises and who has no other duties. Loss Sustained Form - answerThe Loss-Sustained Form provides coverage for losses that both took place and were discovered during the policy period OR that took place within the policy period and were discovered within one year of the termination of the policy period. Discovery Form - answerThe Discovery Form provides coverage for losses that are discovered during the policy period, but that did not necessarily occur during the policy period. Discovery Forms typically, though not always, require the use of a Retroactive Date. Commerical Crime Coverage Form - answer(both Loss-Sustained and Discovery) are designed for private businesses. The insuring agreements of these policies and forms contain one limit of insurance for all types of employee theft. Government Crime Coverage Forms - answer(both Loss-Sustained and Discovery) are designed for government entities. They contain two different employee theft insuring agreements. One contains a separate loss limit that applies to each employee theft loss and the other contains its own loss limit for all losses occurring due to one employee. **Per loss coverage and per employee coverage The Commercial Crime Coverage form offers how many types of insuring agreements?
- answer Employee Theft or Dishonesty - answerEmployee Theft covers acts of theft by an employee that result in loss of, or damage to, money, securities, and other property. Examples of employee theft include an employee stealing money from the cash register or several employees stealing office supplies. Forgery or Altercation - answerForgery or Alteration insures against the forgery or alteration of checks, drafts, promissory notes, and similar items regarding the payment of a sum of money that are made or drawn by the insured or someone acting on behalf of the insured. Forgery is the signing of the name of another person or organization with intent to deceive; it does not mean a signature that consists in whole or in part of one's own name signed with or without authority, in any capacity, for any purpose.
Cause bodily harm to any of the following persons who were kidnapped, or allegedly kidnapped:Director, trustee, partner, member, manager.Employee or a relative or guest of any of these. Cause damage to the insured premises or property inside the insured premises. An exclusion applies if the loss occurs after the insured failed to report the extortionist's demands to an associate, local law enforcement, or the Federal Bureau of Investigation. Guests' Property endorsement - answerThis covers property of guests while it is in a safe deposit box on the premises of the insured, such as a hotel, motel, or lodging facility. This coverage is added by endorsement.
