Casualty Insurance and Liability Flashcards
6 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Casualty Insurance and Liability flashcards as text
What is the primary purpose of an umbrella liability policy?
Answer: To provide additional limits above the underlying policies and fill certain coverage gaps
Umbrella policies provide excess limits above primary policies and may also 'drop down' to cover certain losses excluded by underlying policies, subject to a self-insured retention.
Which of the following is covered under the personal and advertising injury portion (Coverage B) of a CGL policy?
Answer: Libel or slander published by the insured
Coverage B (Personal and Advertising Injury) of the CGL includes offenses such as libel, slander, false arrest, malicious prosecution, and copyright infringement in advertisements.
In casualty insurance, 'aggregate limit' refers to:
Answer: The maximum the insurer will pay for all covered losses during the policy period
The aggregate limit is the total amount the insurer will pay for all covered claims during the policy period, regardless of the number of occurrences.
An employer's liability policy typically provides coverage for:
Answer: Employee lawsuits against the employer alleging negligence beyond the workers comp system
Employer's liability (Part Two of a workers comp policy) covers an employer's legal liability to employees for work-related injuries not fully addressed by the workers comp statute, such as consequential bodily injury suits.
Which party has the right to defend a claim under a standard liability policy?
Answer: The insurer, who has the duty and right to select defense counsel and control the defense
Standard liability policies grant the insurer both the duty and the right to defend covered claims, including selecting defense counsel, without being limited by the policy's liability limits.
The 'severability of insureds' clause in a CGL policy means:
Answer: The policy applies separately to each insured as if they were the only insured, subject to the overall limits
Severability of insureds (also called 'separation of insureds') treats each insured independently for coverage purposes so that the conduct of one insured does not automatically exclude coverage for another.