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RPLU Exam 2024 with Questions and Answers Verified 100% Correct Latest Updat
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RPLU Exam 2024 with Questions and AnswersVerified 100% Correct Latest Update
Forces that led to liability crisis in 1985 - ✔✔* Increased # of medical malpractice lawsuits
* BI & PD claims arising out of asbestos crisis
* Liability for environmental damage, resulting in complex claims due to # of at-fault parties +
uncertainty about the trigger of coverage for pollution
* Other forms of liability - Agent Orange & DES
Liability Crisis (1985) - ✔✔Judicial rulings created the potential for long-tail losses arising
from asbestos, pollution & other latent exposures
Industry challenged by adverse court rulings & coverage interpretations
Insurance rates skyrocketed, coverage difficult to obtain & UW appetite constricted
Long-Tail Losses - ✔✔losses that are paid for claims on expired occurrence policies & that
are potentially paid years after expiration
i.e. asbestos & pollution cases
Commercial General Liability Form (1986) - ✔✔* Response to the liability crisis
* incorporates coverage provisions of 1973 form & the 1976 BFGL endt.
* Notable - replacement of legalistic language with simplified
* Offered 2 types of forms: occurrence or claims-made
Key issues addressed since 1986 in CGL form: - ✔✔1988: inclusion of arbitration proceedings
,1993: inclusion of leased workers under insured status provision (changes in employment law)
1996: clarification of duty to defend a 3rd Party for whom insured is contractually responsible
1999: clarification of known loss rule
2001: clarification of AI in areas of Internet liability & intellectual property
2007: clarification of supplementary payment + addition of exclusion for Do Not Call laws
2013 ISO GCL Policy - ✔✔* Additional endorsements + adjustment of coverage to protect
insurers
* Revised 'Additional Insured' + Professional Services' endorsements
* Added 6 new endt's
* Modifications to policy exclusions:
How has the industry responded to the identification of new exposures excluded by CGL? -
✔✔by providing customized coverage via new, standalone policies i.e. EPLI
Employment Practices Liability Insurance (EPLI) - ✔✔protects businesses against damages &
legal expenses resulting from wrongful acts from this employment practices - discrimination,
sexual harassment, wrongful termination etc.
What is the purpose of CGL and how does it differ from PLI? - ✔✔CGL provides protection
for liability involving premises, operations, contractual liability, products & completed
operations typically associated with commercial business. Coverage is provided for liability due
to BI, PD & medical payments
PLI provides protection for liability that arises from the rendering of professional services.
Covers economic damage for liability arising from E&O or negligence a professional commits
,5 Categories CGL insurance offers coverage for exposures - ✔✔1. Premises and Operations
2. Product Liability
3. Complete Operations Liability
4. Contractual Liability
5. Contingent Liability
CGL covers damages arise out of - ✔✔1. Bodily Injury & Property Damage
2. Personal Injury & Advertising Injury
3. Medical Expenses
Professional Liability Insurance - ✔✔provides coverage to professional for liability claims
arising out of (or failure to provide) negligent acts in performance of professional services
*includes E&O
* covers economic damages
Errors & Omissions (E&O) - ✔✔covers professional & organizations for financial losses
resulting from alleged, wrongful acts (errors, omissions or negligent acts) arising from
professional activities
Wrongful Acts - ✔✔Error, omission or negligent act that a professional commits during the
provision of professional services
CGL vs. PLI - ✔✔PLI - covers economic damages arising out of negligent acts
CGL - covers BI & PD arising out of negligence related to operating a business
, 1st Standard General Liability Policy - ✔✔First set of standard poicy provision developed in
1940
* Adoption of standard form by multiple insurers
What influences led to the development of the 1st Standard General Liability Policy -
✔✔Policy Issues
* Forms independently written by insurers
* Inconsistent, complex & confusing
* Ambiguous/complex legal language
* Difficult for courts to interpret
What influences led to the development of the Comprehensive General Liability Form -
✔✔Legal Environment
* Legal interpretations of language (multiple)
Policy Issues
* Language and provisions not applicable to insured
* Difficult to understand - complex language
Comprehensive General Liability Form (1966) - ✔✔Predecessor of current CGL form
Format & Language Changes:
* Improved policy format & simplified language
* Clarified ambiguities
* Consolidated several types of coverage into a single policy
* Policy jacket added with specific policies applicable to insured
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