RPLU Module 3- Questions & Answers
Analyzing Portfolio - Limits Correct Ans--compare types of limits and amounts for each
policy
-shared or separate among insureds?
-Will limits be adequate?
-If layered, do limits coordinate with underlying policies?
-Gaps?
Analyzing Portfolio - Policy Triggers Correct Ans--determine policy triggers and find gaps or
overlaps
-ERPs or prior acts?
-how do policies interact once triggered?
Analyzing Portfolio - Policy Definitions, Terms and Provisions Correct Ans--how do these
differ among policies? Does that affect coverage?
-how does each policy define loss?
Analyzing Portfolio - Exclusions Correct Ans--are clients exposures covered?
-are exclusions appropriate for client?
Analyzing Portfolio - Gaps or Overlaps Correct Ans--ID gaps and overlaps
-can action be taken to resolve any issues?
,Analyzing Portfolio - Primary and XS Policies Correct Ans--how does coverage apply to each
policy?
-how does each policy describe it's relationsip with other insurance?
Why buy CGL Insurance? Correct Ans--covers BI, PD, PI, and advertising injury related to
operating a business
-usually covers injuries/damages outside of professional service (some exceptions)
-can sometimes add professional exposure by endorsement
Why buy PLI? Correct Ans--covers economic loss arising from provision of professional
services
-separation between PLI and CGL is not always clear-cut in a claim situation (can cause
gap/overlap)
Why buy EPLI? Correct Ans--was built in with CGL until the 90's when discrimination suits
started to become more frequent
-employment-related suits
-some other coverages have a small, limited sublimit
What can cause gaps/overlaps? Correct Ans--Policy Language
-Triggers
-Transitioning Between Insurers or Policies
,-Gray Areas of Coverage
How can policy language lead to gap/overlap? Correct Ans--PLI does not have a standard
form, so policy language varies A LOT throughout the industry while CGL is roughly the same
throughout
How can policy triggers cause gap coverage? Correct Ans-If different policies attach at
different times there could be a gap
How can Transitioning Between Insurers cause a gap? Correct Ans-When switching insurers,
the definitions, terms, conditions, and claims reporting could all be different from the prior
insurer
How can loss exclusions cause a gap in coverage? Correct Ans--sometimes CGL excludes
economic and non-economic claims for certain exposures
-PLI covers only economic loss
-if a non-economic loss is excluded from CGL and not covered by PLI, there's a gap
-some lines of PLI cover non-economic losses (i.e. EPLI will cover mental anguish and
emotional distress)
Gray Areas of Coverage and Gaps Correct Ans--with layered policies it can be difficult to
determine which policy will cover a claim
-ex. a slip and fall in a nursing home can either trigger PLI or CGL, depending on the cause of
the fall
, What is the relationship between CGL and PLI? Correct Ans-CGL:
-exposures relating to operating a business
-generally excludes professional services
-sometimes PL claims overlap with GL or certain professional exposure can be added to policy
PLI:
-professional exposures
-generally excludes BI, PD, or advertising injury
-typically covers only economic losses
What is ODL Insurance? Correct Ans--Outside Director Liability
-included in most personal umbrellas
-covers an individual that serves on the Board of Directors for a non-profit for their scop as a
director
Problems with Umb coverage over PLI? Correct Ans--most umbrellas are written on Occ form
and PLI is usually CM
-can cause non-concurrency issues with coverage triggers
Errors and Omissions Insurance Correct Ans--provides coverage for liability that arises from
the alleged negligence (i.e. error or omission) in the course of rendering a professional service
Analyzing Portfolio - Limits Correct Ans--compare types of limits and amounts for each
policy
-shared or separate among insureds?
-Will limits be adequate?
-If layered, do limits coordinate with underlying policies?
-Gaps?
Analyzing Portfolio - Policy Triggers Correct Ans--determine policy triggers and find gaps or
overlaps
-ERPs or prior acts?
-how do policies interact once triggered?
Analyzing Portfolio - Policy Definitions, Terms and Provisions Correct Ans--how do these
differ among policies? Does that affect coverage?
-how does each policy define loss?
Analyzing Portfolio - Exclusions Correct Ans--are clients exposures covered?
-are exclusions appropriate for client?
Analyzing Portfolio - Gaps or Overlaps Correct Ans--ID gaps and overlaps
-can action be taken to resolve any issues?
,Analyzing Portfolio - Primary and XS Policies Correct Ans--how does coverage apply to each
policy?
-how does each policy describe it's relationsip with other insurance?
Why buy CGL Insurance? Correct Ans--covers BI, PD, PI, and advertising injury related to
operating a business
-usually covers injuries/damages outside of professional service (some exceptions)
-can sometimes add professional exposure by endorsement
Why buy PLI? Correct Ans--covers economic loss arising from provision of professional
services
-separation between PLI and CGL is not always clear-cut in a claim situation (can cause
gap/overlap)
Why buy EPLI? Correct Ans--was built in with CGL until the 90's when discrimination suits
started to become more frequent
-employment-related suits
-some other coverages have a small, limited sublimit
What can cause gaps/overlaps? Correct Ans--Policy Language
-Triggers
-Transitioning Between Insurers or Policies
,-Gray Areas of Coverage
How can policy language lead to gap/overlap? Correct Ans--PLI does not have a standard
form, so policy language varies A LOT throughout the industry while CGL is roughly the same
throughout
How can policy triggers cause gap coverage? Correct Ans-If different policies attach at
different times there could be a gap
How can Transitioning Between Insurers cause a gap? Correct Ans-When switching insurers,
the definitions, terms, conditions, and claims reporting could all be different from the prior
insurer
How can loss exclusions cause a gap in coverage? Correct Ans--sometimes CGL excludes
economic and non-economic claims for certain exposures
-PLI covers only economic loss
-if a non-economic loss is excluded from CGL and not covered by PLI, there's a gap
-some lines of PLI cover non-economic losses (i.e. EPLI will cover mental anguish and
emotional distress)
Gray Areas of Coverage and Gaps Correct Ans--with layered policies it can be difficult to
determine which policy will cover a claim
-ex. a slip and fall in a nursing home can either trigger PLI or CGL, depending on the cause of
the fall
, What is the relationship between CGL and PLI? Correct Ans-CGL:
-exposures relating to operating a business
-generally excludes professional services
-sometimes PL claims overlap with GL or certain professional exposure can be added to policy
PLI:
-professional exposures
-generally excludes BI, PD, or advertising injury
-typically covers only economic losses
What is ODL Insurance? Correct Ans--Outside Director Liability
-included in most personal umbrellas
-covers an individual that serves on the Board of Directors for a non-profit for their scop as a
director
Problems with Umb coverage over PLI? Correct Ans--most umbrellas are written on Occ form
and PLI is usually CM
-can cause non-concurrency issues with coverage triggers
Errors and Omissions Insurance Correct Ans--provides coverage for liability that arises from
the alleged negligence (i.e. error or omission) in the course of rendering a professional service
