General Liability Insurance Flashcards

Intentional acts committed by the insured are treated under a CGL policy by:

Answer: Being excluded because insurance is designed to cover accidental, not deliberate, losses

Intentional acts are excluded from CGL coverage because the fundamental purpose of liability insurance is to protect against fortuitous, accidental events, not deliberate wrongdoing.

The pollution exclusion in a standard CGL policy generally:

Answer: Excludes bodily injury and property damage arising from the discharge, dispersal, or escape of pollutants

The absolute pollution exclusion broadly bars coverage for losses caused by the release or escape of pollutants, helping insurers avoid open-ended environmental liability.

An 'additional insured' endorsement to a CGL policy:

Answer: Extends coverage under the named insured's policy to another party for specified purposes

An additional insured endorsement adds another party—such as a property owner or general contractor—to the named insured's policy so they share in its liability protection for specified operations.

Under the contractual liability exclusion in a CGL policy, coverage for liability assumed by contract:

Answer: Is still available for liability assumed under 'insured contracts,' such as certain indemnification agreements

While the contractual liability exclusion bars coverage for most assumed liability, 'insured contracts'—including leases, easements, and hold-harmless agreements covering the insured's tort liability—are carved back in.

Umbrella liability insurance relates to a CGL policy in that it:

Answer: Provides excess coverage that applies after the underlying CGL limits are exhausted

Umbrella liability insurance sits above primary policies like CGL, auto, and employers' liability, paying covered losses that exceed those policies' limits.

In the District of Columbia, certain licensed businesses such as contractors may be required to:

Answer: Carry general liability insurance as a condition of obtaining or renewing a DC business license

DC regulations may require specific licensed business categories, including contractors and certain service providers, to maintain general liability insurance in order to secure or renew their business license.

Under DC Department of Insurance, Securities and Banking (DISB) regulations, liability insurers are required to:

Answer: Acknowledge receipt of claims within 10 working days and render a coverage decision within 45 days

DC DISB rules impose prompt claims-handling standards, including acknowledging claims within 10 working days and providing a coverage decision within 45 days of receiving all necessary information.