Do supplementary payments reduce the limits of a commercial general liability policy? Commercial general liability (CGL) and business automobile liability policies cover supplementary payments in addition to their limits of liability. In contrast, supplementary payments reduce the limit of coverage under most (although not all) professional liability policies .
What are supplementary payments in liability policies?
Supplementary payments are special payments made by insurers to those who are insured by the company . These payments often stem from legal issues, such as costs associated with investigating claims and defending suits against the insured.
Which one of the following is true of the supplementary payments in the commercial general liability CGL coverage form?
16) Which one of the following is true of the supplementary payments in the Commercial General Liability (CGL) Coverage form? The obligation to pay these supplementary payments ends when the limit of insurance is exhausted .
What supplementary payments can be paid under the liability section of the PAP?
Which of the following would not be covered under the supplementary payments provided under Coverage A bodily injury and property damage of a CGL policy?
Under the CGL, which of the following would exclude from coverage the legal liability associated with a product? Liability arising out of expected or intended injury is not covered by the CGL policy.
What is a supplement payment?
Supplemental wages are payments made by an employer in addition to an employee’s regular wages . Wages that vary from pay period to pay period (e.g., overtime, commissions, bonuses and reported tips) are always treated as supplemental wages, even if they are the only payments an employee receives.
Which of the following is not one of the limits of liability provided by the CGL?
The only circumstances in which the general aggregate limit does not apply is to damages because of bodily injury or property damage arising out of the products-completed operations hazard .
Which of the following is true regarding the supplemental extended reporting period?
All of the following are true of the extended reporting period, except: The supplemental extended reporting period must be purchased at the beginning of the policy period . correct-The supplemental extended reporting period can be purchased up to 60 days after the end of the policy term.
What is the maximum the Supplementary payments coverage of a BAP will pay for the cost of bail bonds?
Other supplementary payment provisions deal with bonds. The General Liability policy and the PAP state that the insurer will pay up to $250 for the cost of bail bonds required because of an accident or traffic law violations, while the BAP will pay as much as $2,000 .
Which of the following is not a supplementary payment under the personal auto policy?
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? – Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.
These expenses covered under the CGL’s Supplementary Payments include: court cost, interest on judgements, and pre-judgement interest .
What does commercial general liability cover?
Commercial general liability insurance covers claims arising from injuries or damage that your business caused , such as: Damage to someone’s property. Bodily injury. Personal injury, like libel and slander.
Which of the following is true regarding supplementary payments under Part A of the personal auto policy?
All of the following are true of supplementary payments under Part A of the Personal Auto Policy, except: Payments are deducted from other limits of liability ; Supplementary payments are in addition to the policy’s Limit of Liability.
What is the difference between commercial general liability and general liability?
General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business’ physical location and equipment, whether you own or lease it.
Which of the following acts would not be covered under a commercial general liability policy?
The Commercial General Liability Coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement.
Which coverage does the general aggregate limit not pay damages for?
Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury .
What is a supplement to an insurance claim?
Supplementing means the orderly addition of charges to an insurance claim . This can happen for several reasons: The estimate for replacement materials was below the actual outlay due to fluctuating commodities prices or other causes. The adjuster overlooked a damaged area during the inspection and estimate.
What is supplemented pay benefit?
Supplemental wages are payments paid to employees in addition to their normal pay . Overtime, bonuses, commissions, and other benefits are among them. An employer may be compelled to withhold taxes from supplemental wages if they are provided.
Which is a supplemental compensation income?
What are the standard limits under the commercial general liability policy?
LIMITS: The limit you select can usually range from $300,000 up to $1,000,000 each occurrence . To obtain a higher limit requires the purchase of an Umbrella or Excess Liability policy. PREMIUM: The minimum policy premium is usually $500.
How do general liability limits work?
The general aggregate is the maximum amount of money a liability insurance policy will pay in a given policy term. Unlike a per-occurrence limit, which limits the amount per claim, a general aggregate limit can be exhausted through either two claims, fifty claims, or anywhere in between .
Which of the following exposure is the most likely cause for a commercial general liability policy to pay a loss on the behalf of an insured business?
The most common exposure to loss that a commercial entity has is premises which frequently leads to lawsuits for negligence arising out of the ownership and maintenance of land and buildings.
When added to a management liability policy is an extended reporting period?
Which is correct about the CGL claims-made form supplemental extended reporting period?
correct! The ISO commercial general liability claims-made form provides an additional 60 days to report claims at no additional cost. The supplemental extended reporting period provides unlimited time, but costs an additional 200% of the annual renewal premium .
Which of the following would not be included in a commercial package policy?
All the following are included in the CPP Common Policy Declarations EXCEPT: policy period, time and date coverage begins and ends . list of forms applicable to all coverage parts.
Which of the following exclusions under the business auto policy may be covered by the BAP by endorsement?
Coverage for loss or damage to a customer’s vehicle in the insured’s care is excluded under the BAP.
Which of the following losses would be covered by section 3 of a BAP?
While windstorm is a covered peril under the specified causes of loss of the BAP, under Section III (garagekeepers coverage) the Garage policy these causes of loss include only fire, lightning, explosion, theft, mischief, and vandalism .
Which of the following claims would be excluded under the business auto policy?
Which of the following claims would be excluded under the Business Auto Policy? Damage to property in the insured’s care, custody, or control is excluded under the BAP.
What is not included in supplementary payments portion of a liability policy?
Which one of the following is true of the supplementary payments in the commercial general liability CGL coverage form?
Which of the following would not be covered under liability section of a personal auto policy?
Under the liability portion of your policy, coverage is generally excluded in the following situations: Damage or injury is intentional . There is duplicate coverage (e.g., claims covered by workers’ compensation)
What do supplementary payments do in liability policies?
Which of the following would not be covered under the supplementary payments provided under Coverage A bodily injury and property damage of a CGL policy?
Under the CGL, which of the following would exclude from coverage the legal liability associated with a product? Liability arising out of expected or intended injury is not covered by the CGL policy.
What are the three sections of commercial general liability?
In technical terms, there are three primary coverage sections that make up a CGL policy: premises liability, products liability, and completed operations . A CGL policy protects your business from financial loss resulting from claims of injury or damage to others caused by you or your employees.
Which of the following is not one of the limits of liability provided by the CGL?
The only circumstances in which the general aggregate limit does not apply is to damages because of bodily injury or property damage arising out of the products-completed operations hazard .
What does coverage limit mean?
An insurance coverage limit determines the maximum amount of money an insurance company will pay for a covered claim .
