Exam (elaborations)
CIC Commercial Multiline Exam
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- Crimes Against Property - SCCJA.
CIC Commercial Multiline Exam
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CIC Commercial Multiline Exam2 ways to provide bailee coverage - ANS--legal liability basis (to trigger coverage the
bailee must be legally liable for the damage to bailors property, what would a prudent
person do is the deciding factor on if negligence was involved)
- direct damage basis (to trigger coverage the bailee does not have to be legally liable
for the damage, goodwill policy)
3 coverage extensions in builders risk - ANS-- debris removal
- emergency removal (preservation of property- limits to 10 days)
- limited fungus coverage
3 types of carriers used to transport goods - ANS-- common
- contact
- private
4 unique challenges for projects under construction (builders risk) - ANS--
changing/increasing values and exposures
- changing insurable interest as project develops
- there is property to be covered that is no located on the property site (ex. warehouse
for materials)
- projects in the course of construction are more susceptible to loss than are already
completed building or structures
9 examples of exposures to loss when dealing with builders risk - ANS-- building or
structure under construction
- materials and supplies at a job site
- materials and supplies NOT at job site but at TEMP location
- temporary structures (dumpster or portapotty)
- property in transit
- debris removal
- soft costs
- business income or rental value
- materials and supplies of others in the CCC of insureds
additional coverages that can be added to soft costs
additional exclusions under builders risk policy - ANS-- extra expense
,- rental income
- coverage extensions can include delay caused by ordinance or law, interruption by
civil authority, limited fungus coverage)
- interference by strikers
- suspension or cancellation of a contract
- break of contract penalties
- changes in plans, designs, or specifications
- fines or penalties
- cost to test for pollutants
Apply conditions of an EPLI policy to claims situations. - ANS-1. duties in the event of a
claim or wrongful act that may result in a claim
2. **Consent to settle (hammer cause)
3. Transfer of duties when limit of insurance is used up
4. Representations and separation of insured (application must be true)
Apply the defense provision of EPLI Policies (LO6) - ANS-- Most include right and duty
to defend
- No duty to defend if a wrongful act is not covered
- Some EPLI policies give the insured the right to select defense, it big.
- The insurer typically has the right to investigate and settle not the insured
- *** Cost of defense is within the limits
- Defense expenses ty typically are in excess of the deductible or retention
- Defense ends when limits have been exhausted by payment of defense expenses,
judgements or settlements
- Definition of "defense expenses" - cost investigate defend, or settle a claim, defense
expense do not include insurer or insured internal claims handling expenses,
Apply the definition of wrongful act as contained in an EPLI policy. (LO5) - ANS-Many
coverage broad range of wrongful acts, but each policy defines (named peril coverage)
wrongful acts no standard definition may include:
Discrimination
Sexual Harassment
Retaliation
Wrongful termination
Wrongful employment practices
, Breach of employment
Failure to grant tenure
Workplace tort
Discrimination
Wrongful demolition, termination....
bailee coverages in other contracts - ANS-- inland marine can cover them
- floaters can cover the personal property that is in the bailees care ,custody, and
control
- commercial property (limited coverage)
- garage keepers coverage
bailor coverages and examples
why do we need coverage for bailment exposure - ANS-- covers the named insured
property while in possession of others
- written on a scheduled basis (don't trust people)
patterns and dies floater
garment contractors floater
bailment exposure is excluded in other policies like CGL exclusion J- CCC, and in many
policies the no benefit to bailee condition
builders risk can be written to cover - ANS-- new construction
- additions to existing building or structures
- renovations, repair, or remodeling
Compare and contract the insuring agreement known as pay on behalf and indemnify
(LO5) - ANS-Pay on Behalf of
- The insure has stricter control of defense, investigation or settlements
- The insurer pays damages directly to third party on behalf of
-The insure has the duty to defend when the underlying does not provide coverage
Indemnify
- strict indemnity (insured uses their own funds directly to pay claims and insurer
reimburses)
- based on legal obligations to pay (insured still has control but indemnity is based on
legal obligation to pay - insurer write checks to insured)
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