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Define "bodily injury"
Bodily injury refers to physical injury sustained, and associated with external causes
- Bodily injury also includes caused by
- - sickness or disease
- - Death resulting from any such injury at a later date will be considered as part of the same bodily injury
Define "property damage"
Unintentional damage to the property of others is generally covered by their liability policy includes:
- Physical injury to tangible property as well as the resulting loss of use
What's the Third Party Coverage ?
A third party is anyone or any entity that is not named in the policy
Who determines the matter of "legal liability"
Only the courts have the authority to determine one's legal liability for injury or damage caused. It does not matter if the insured, insure, and all the lawyers in the world believe someone is legally liable.
- Occurrence is defined by the policy as an event
- - which occurs suddenly and unexpectedly
- - which occurs over a long period of time
What is the difference between Aggregate Limits and Split Limits ?
- - Aggregate Limit is the maximum amount paid for all valid claims during policy term
- - Split Limit is the limit for each Liability
Explain the purpose of "compensatory damages"
Liability policies pay for compensatory damages only.
Compensatory damages are those which are intended to compensate the third party for the injury or damage caused by the insured.
The damages intended by court to punish the insured is not insurer's responsibility.
Stated the duties owed by the insured to the insurer in the event of an occurrence, claim or action
- - Provide the insurer with prompt notification of any occurrence which may lead to a claim or action
- - Immediately provide the insurer with copies of any legal documents received (know as notice of a claim)
- - Authorize the insurer to obtain records and other information such as written reports by policy and other authorities in defending the claims
- - Assist in the investigation, settlement or defence of the claim or action
What is the purpose of Supplement Payments ?
The limit of insurance provided by the policy for bodily injury and property damage is reserved for the payment of claims.
Additional expenses incurred by insurer and insureds in investigating, settling and defending a claim.
Identify four type of Supplementary Payments
- 1. Cost of defence: legal costs
- 2. Reasonable expenses incurred by the insured at the insurers's request to assist in the investigation and defence of the claim
- 3. Court costs assessed against the insured
- 4. Interest from the date the judgment was rendered but only on the amount which is within the limit of insurance provided by the policy.