CIC Commercial Casualty flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Occurrence

An accident, including continuous or repeated exposure to substantially the same general harmful conditions, that causes bodily injury or property damage during the policy period.

General aggregate limit

The maximum amount the insurer will pay for all covered losses under Coverage A, B, and C during a policy period, excluding products-completed operations.

Products-completed operations aggregate

A separate aggregate that caps the total paid for bodily injury or property damage arising from the insured's products or completed work away from the premises.

Insured contract

A defined term covering leases of premises, sidetrack agreements, easement agreements, and business contracts where liability is assumed, which the contractual liability exclusion does not bar.

Personal and advertising injury

Coverage B offenses such as libel, slander, wrongful eviction, and infringement of copyright or slogan in an advertisement, subject to specific exclusions.

Medical payments coverage

Coverage C pays reasonable medical expenses incurred within one year of an accident, regardless of fault, subject to a per-person limit.

Damage to your work exclusion

Bars coverage for damage to the insured's own completed work, but the exception preserves coverage for damage to other property caused by that work.

Known loss doctrine

Coverage is barred when the insured knew of a loss or damage before the policy inception, because insurance cannot transfer an already-existing loss.

Additional insured endorsement

An endorsement that extends insured status to another party, such as a landlord or general contractor, as required by written contract.

Certificate of insurance

A document evidencing coverage that does not confer insured status or amend the policy; additional insured status requires an endorsement.

CG 20 10 endorsement

Grants additional insured status for ongoing operations, typically limited to liability caused in whole or in part by the named insured's acts or omissions.

CG 20 37 endorsement

Extends additional insured status to completed operations, commonly paired with CG 20 10 so coverage continues after the named insured's work is finished.

Blanket additional insured

An endorsement that automatically grants additional insured status to entities required by written contract, avoiding the need to schedule each one individually.

Primary and noncontributory

Wording that makes the additional insured's own policy excess, requiring the named insured's policy to respond first to a covered loss.

Waiver of subrogation

An endorsement preventing the insurer from pursuing another party, often an additional insured, after paying a loss.

Scope of contract limitation

Additional insured coverage is generally limited to the liability the contract requires the named insured to assume, not the additional insured's sole negligence.

Symbol 1 any auto

A business auto coverage symbol meaning all autos, whether owned, hired, borrowed, or nonowned, are covered autos under the policy.

Symbol 2 owned autos

A business auto coverage symbol covering only autos the named insured owns, excluding hired and nonowned autos.

Symbol 8 hired autos

A business auto coverage symbol covering autos leased, hired, rented, or borrowed by the named insured for business use.

Symbol 9 nonowned autos

A business auto coverage symbol covering autos used in the insured's business that are not owned, leased, rented, hired, or borrowed.

Garagekeepers coverage

Coverage for damage to customers' autos left in the insured's care, custody, or control while the insured services or stores them.

Hired auto physical damage

Optional coverage that pays for damage to rented or hired vehicles, since liability coverage alone does not repair the vehicle itself.

Fellow employee exclusion

Bars business auto liability coverage for injury to a fellow employee in the course of employment, leaving workers compensation as the remedy.

MCS-90 endorsement

A motor carrier endorsement providing proof of financial responsibility and creating liability for for-hire carriers regardless of policy exclusions.

Workers compensation Part One

Pays statutory benefits required by state law regardless of fault; the insurer pays benefits directly and no deductible typically applies.

Employers liability Part Two

Covers the employer's legal liability for work-related injury or disease outside the statutory system, with per-accident, per-employee, and aggregate limits.

Other states insurance Part Three

Extends workers compensation coverage to states listed in the policy not already covered under Part One, often for newly acquired operations.

Exclusive remedy doctrine

Statutory workers compensation benefits are generally the employee's sole remedy against the employer, subject to state-specific exceptions.

Experience modification factor

A factor comparing the employer's loss history to expected losses for its classification; below 1.00 reduces premium and above 1.00 increases it.

Premium calculation basis

Workers compensation premium equals payroll per $100 multiplied by the classification rate, adjusted by experience modification and discounts.

Officer election exclusion

Sole proprietors, partners, and certain corporate officers may elect to be excluded from workers compensation coverage, with treatment varying by state.

Federal coverage endorsements

Longshore and Harbor Workers' Compensation Act and FELA exposures require separate coverage or endorsements outside the standard state workers compensation policy.