III IC-74 flashcards

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

Occurrence trigger

The policy in force when the bodily injury or property damage occurs responds, even if the claim is filed years later; the injury date, not the claim date, controls coverage.

Claims-made trigger

The policy in force when the claim is first made responds, provided the wrongful act occurred on or after the retroactive date; the claim date, not the act date, controls.

Retroactive date

The earliest date on which a wrongful act may occur and still be covered under a claims-made policy; acts before this date are excluded by the prior-acts provision.

Extended reporting period

An endorsement extending the time to report claims for acts occurring before policy expiry; it does not extend the policy period or cover new acts, and is priced as a percentage of expiring premium.

Coverage A

The CGL insuring agreement covering sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence, plus defense costs.

Coverage B

The CGL insuring agreement covering personal and advertising injury offenses such as libel, slander, wrongful eviction, and infringement of copyright or slogan in an advertisement.

Coverage C

Medical payments coverage under the CGL; it pays reasonable medical expenses for bodily injury on the insured's premises or from its operations, regardless of fault.

Each-occurrence limit

The maximum the insurer pays for all damages arising from a single occurrence, regardless of the number of claimants, claims, or suits filed.

General aggregate

The maximum the insurer pays for all covered claims during the policy period, excluding products-completed operations; it caps total indemnity for the term.

Products-completed operations aggregate

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

Fire legal liability

A CGL sublimit covering damage to premises rented to the insured caused by its negligence; it does not cover the insured's own property or improvements.

Expected or intended injury

A CGL exclusion barring coverage for injury or damage the insured expected or intended; the test is subjective intent, not merely the intentional nature of the act.

Contractual liability exclusion

A CGL exclusion barring liability assumed under contract, with an exception for insured contracts such as leases, easements, and defined indemnity agreements.

Pollution exclusion

A CGL exclusion barring bodily injury or property damage from pollutants; the absolute version removes the sudden-and-accidental exception, and buy-back endorsements restore narrow coverage.

Your-work exclusion

A CGL exclusion barring damage to the insured's own work or product; the subcontractor exception restores coverage for damage to other property caused by a subcontractor's work.

Impaired property exclusion

A CGL exclusion barring loss of use of tangible property that cannot be used because it incorporates the insured's defective product or work, or because the insured failed to perform.

Duty to defend

The insurer's obligation to defend suits seeking damages covered by the policy; it is broader than the duty to indemnify and applies if any claim is potentially covered.

Reservation of rights

A letter preserving the insurer's coverage defenses while it defends the insured; failure to reserve can waive the right to deny coverage later.

Additional insured

A party granted insured status by endorsement, usually for liability arising from the named insured's operations; the certificate alone does not confer this status.

Waiver of subrogation

An endorsement waiving the insurer's right to recover from a third party after paying a claim; it is often required by contract and must be added in advance.

Self-insured retention

A dollar amount the insured funds before the policy responds; the insured often controls defense within the SIR, unlike a deductible reimbursed to the insurer.

Umbrella liability

A policy sitting above scheduled underlying coverage that drops down when underlying limits are exhausted or absent; it follows underlying terms and does not broaden coverage.

Professional liability (E&O)

Claims-made coverage for negligent acts, errors, or omissions in rendering professional services; it excludes bodily injury and property damage handled by the CGL.

Directors and officers liability

Coverage for wrongful acts by directors and officers; Side A protects personal assets, Side B reimburses corporate indemnification, and Side C covers entity securities claims.

Employment practices liability

Claims-made coverage for wrongful termination, discrimination, harassment, and retaliation; it excludes bodily injury and often wage-and-hour claims unless endorsed.

Cyber liability

Claims-made coverage for data breach response, notification costs, regulatory defense, and network interruption; it is separate from the CGL, which excludes data breach.

Commercial auto liability

Coverage for bodily injury and property damage from owned, hired, and non-owned autos; the CGL auto exclusion sends these exposures to the auto policy.

Workers compensation Part Two

Employer's liability coverage for tort suits by employees for work-related injury; it responds where the CGL employer's liability exclusion bars coverage.

Liquor liability

Coverage for injury or damage arising from serving or furnishing alcohol; the CGL liquor exclusion applies to insureds in the business of selling or serving alcohol.

Certificate of insurance

An ACORD 25 form showing policy type, limits, and additional insured status; it is evidence only and does not amend or create coverage.

Premium audit

The insurer's right to examine the insured's records after policy expiry to determine actual exposure; premium is adjusted, and underreporting leads to additional premium.

Comparative negligence

A doctrine reducing a plaintiff's recovery by the percentage of fault attributable to the plaintiff; some jurisdictions bar recovery entirely under contributory negligence rules.