C13: Insurance Against Liability-Part 1 study guide
C13: Insurance Against Liability-Part 1 · Work through your exam, one topic at a time.
C13: Insurance Against Liability-Part 1 is a liability-insurance exam within the Chartered Insurance Professional (CIP) designation pathway, the credential series offered through the Insurance Institute of Canada for people building careers in property and casualty underwriting, claims, broking, and agency work. This first liability paper builds the foundation the later parts assume: how legal liability arises from negligence and other torts, which defences reduce or defeat a claim, and how a commercial general liability policy responds. The C13: Insurance Against Liability-Part 1 study guide has 9 sections and about 3,125 words.
01Introduction to Liability Insurance and the Legal Environment
Liability insurance answers a different question than property insurance. Property coverage asks what happened to the insured's own stuff; liability coverage asks what the insured owes someone else because of injury or damage the insured caused.
362 words, about 2 min02Legal Liability: Negligence, Torts, and Defenses
A candidate must know the four elements of negligence: duty, breach, causation (actual and proximate), and damages. Duty is generally owed to foreseeable plaintiffs; premises liability varies by the entrant's status (invitee, licensee, trespasser), though many jurisdictions have moved toward a reasonable-care standard.
332 words, about 2 min03Commercial General Liability: Coverage A - Bodily Injury and Property Damage
Coverage A is the heart of the CGL form. It covers sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies, caused by an occurrence within the coverage territory during the policy period.
369 words, about 2 min04Commercial General Liability: Coverage B - Personal and Advertising Injury
Coverage B covers sums the insured becomes legally obligated to pay as damages because of personal and advertising injury caused by an offense arising out of the insured's business, but only offenses committed in the coverage territory during the policy period. Personal and advertising injury is defined by enumerated offenses: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction or entry; libel, slander, or disparagement; invasion of privacy; use of another's advertising idea in the insured's advertisement; and infringement of copyright, trade dress, or slogan in the insured's advertisement.
344 words, about 2 min05Commercial General Liability: Coverage C - Medical Payments
Coverage C pays reasonable medical expenses incurred within one year of the date of an accident, for bodily injury caused by an accident on premises the insured owns or rents, or on ways immediately adjoining the premises, or because of the insured's operations. It applies regardless of fault.
361 words, about 2 min06CGL Exclusions, Conditions, Definitions, and Endorsements
The CGL exclusions do the heavy lifting in coverage analysis. Candidates should know the major ones: expected or intended injury; contractual liability (with an exception for insured contracts); liquor liability; workers' compensation and employer's liability; pollution; aircraft, auto, and watercraft; mobile equipment; war; damage to property (care, custody, and control; your work; your product; impaired property); damage to your product; damage to your work; and recall of products.
333 words, about 2 min07Occurrence vs. Claims-Made Coverage and Triggers of Coverage
Occurrence policies respond to injury or damage that occurs during the policy period, regardless of when the claim is made. Claims-made policies respond to claims first made during the policy period, often with a retroactive date and an extended reporting period (tail).
347 words, about 2 min08Other Liability Coverages: Umbrella, Excess, and Professional
Umbrella and excess policies sit above primary coverage. Excess policies typically follow form and pay after the underlying limits are exhausted.
323 words, about 2 min09Policy Limits, Deductibles, and Self-Insured Retentions
Limits define the most the insurer will pay. The CGL uses an occurrence limit (per occurrence) and an aggregate limit (annual total).
354 words, about 2 min