APA Commercial General flashcards

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

Occurrence definition

An accident, including continuous or repeated exposure to substantially the same general harmful conditions. It does not include intended or expected injury, which is why intentional acts generally fall outside Coverage A.

Bodily injury definition

Bodily harm, sickness, or disease sustained by a person, including death resulting from any of these at any time. Emotional distress without physical manifestation is generally not covered.

Property damage definition

Physical injury to tangible property, including loss of use of that property, or loss of use of tangible property that is not physically injured. Loss of use is deemed to occur at the time of the occurrence.

Personal and advertising injury

Injury arising out of offenses such as libel, slander, wrongful eviction, and infringement of copyright or slogan in an advertisement. Knowing violation of rights is excluded.

Coverage C medical payments

Pays reasonable medical expenses incurred within one year of an accident on the insured's premises or arising from the insured's operations, regardless of fault and without a deductible.

General aggregate limit

The most the insurer will pay for all injury and damage covered under Coverage A, B, and C during the policy period, excluding products-completed operations claims.

Products-completed operations aggregate

A separate aggregate applying to bodily injury or property damage occurring away from the insured's premises and arising out of the insured's product or completed work.

Each occurrence limit

The maximum payable for all damages because of bodily injury or property damage arising out of any one occurrence, regardless of the number of claimants or insureds involved.

Damage to premises rented

A sublimit covering damage to premises rented to the insured, typically applying to fire damage and usually written on a per-occurrence basis, not per lease.

Expected or intended injury exclusion

Bars coverage for bodily injury or property damage expected or intended from the standpoint of the insured. The exclusion is applied subjectively to the insured's intent.

Your work exclusion

Excludes property damage to the insured's own work performed by or for the insured, and to property that must be repaired because the insured's work was incorrectly performed.

Impaired property exclusion

Excludes damage to property that has not been physically injured but cannot be used because of the insured's defective product or work, or because of a delay or failure to perform.

Pollution exclusion

Excludes bodily injury or property damage arising out of actual or threatened discharge of pollutants. Limited exceptions exist for hostile fire and certain building heating equipment.

Liquor liability exclusion

Applies to insureds in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages, barring claims arising from causing or contributing to intoxication.

Employer's liability exclusion

Excludes bodily injury to an employee arising out of and in the course of employment, including consequential injury to a spouse or relative. Workers' compensation coverage is separate.

Separation of insureds condition

Coverage applies as if each named insured were the only insured, except for limits and duties after loss. It does not make an exclusion inapplicable to the named insured.

Duties after loss

The insured must notify the insurer promptly, cooperate in investigation and defense, and authorize access to records. Voluntary payments without consent generally forfeit coverage for those amounts.

Duty to defend

The insurer's right and duty to defend ends when the applicable limit is exhausted by payment of judgments or settlements. Defense costs are paid in addition to the limit.

Supplementary payments

Amounts paid in addition to limits, including defense costs, bond premiums, and interest on judgments. They do not reduce the occurrence or aggregate limits.

Claims-made trigger

Coverage applies to claims first made during the policy period, regardless of when the wrongful act occurred, subject to a retroactive date that bars earlier acts.

Retroactive date

The date before which no wrongful act is covered under a claims-made policy. Acts occurring before this date are excluded even if the claim is first made during the policy period.

Extended reporting period

A tail that extends the time to report claims for acts occurring before the policy expired. It does not extend the policy period for new occurrences.

Additional insured endorsement

An endorsement adding a person or organization as an insured, often required by written contract. Coverage may be limited to vicarious liability or to ongoing operations.

Waiver of subrogation

A condition allowing the insured to waive the insurer's right of recovery against another party, enforceable only if agreed in writing before the loss.

Primary and noncontributory

An endorsement making the policy primary and requiring it to respond without contribution from other insurance, typically required in construction and vendor contracts.

Certificate of insurance

A document evidencing coverage but conferring no rights on the holder. The policy wording and endorsements control coverage, not the certificate.

Completed operations hazard

Bodily injury or property damage arising out of the insured's product or completed work away from the insured's premises, subject to its own aggregate limit.

Products hazard

Bodily injury or property damage arising out of the insured's product after it has been relinquished to others, away from the insured's premises.

Contractual liability exclusion

Excludes liability assumed under contract, except liability assumed in an insured contract such as a lease or easement, which is carved back into coverage.

Insured contract

A defined term including leases of premises, easement agreements, and certain business contracts where liability is assumed, restoring coverage otherwise barred by the contractual exclusion.

Voluntary property damage

The insured may not voluntarily make payments, assume obligations, or incur expenses without the insurer's consent, except for first aid and reasonable expenses to protect property.

Knowledge of occurrence

Coverage applies only if the insured had no knowledge of an occurrence before the policy period began; prior knowledge bars coverage for that occurrence.

Who is an insured

Named insureds, partners and members for scope-of-duty acts, and employees for scope-of-employment acts. Employees are not insureds for injury to co-employees.