风险管理与保险前半学期课后练习答案：IMch11

1、CHAPTER 11Risk Management and CommercialLiability RiskCOMMON LIABILITY CONTRACT PROVISIONSThe Insuring ClauseSupplementary PaymentsDefinition of the InsuredExclusionsLimits of LiabilityClaims-Made versus Occurrence CoverageBasic Extended Reporting PeriodSupplemental TailNoticeCOMMERCIAL LIABILITY IN

2、SURANCECOMMERCIAL GENERAL LIABILITYExclusions in the CGLAutomobileProduct RecallLiquor LiabilityPollutionEndorsementsExclusion of Specific Accident(s), Products, Work, or Location(s)Vendors EndorsementEMPLOYMENT PRACTICES LIABILITYBUSINESS AUTO COVERAGERisk Management TipsCommercial AutoPROFESSIONAL

3、 LIABILITY INSURANCEProfessional versus Other Liability ContractsMedical Malpractice InsuranceInsurance Agents and Brokers Errors-and-Omissions LiabilityOther Professional Liability InsuranceCommercial UmbrellaA Profile of a Catastrophic Liability Program38KEY TERMS AND CONCEPTSAggregate limitsBroad

4、 form property damage liability programBusiness Automobile Policy (BAP)Claims-made policyCommercial general liability (CGL)Commercial umbrellaDramshop exclusionErrors-and-omissions policiesExposure doctrineExtended period of indemnityExtended reporting periodMalpractice policiesManifestation doctrin

5、eOccurrence policyProfessional liabilitySistership exclusion Supplemental tailTriple-trigger approachVendors endorsementANSWERS TO QUESTIONS FOR REVIEW AND DISCUSSION1.Legal liability insurance means the insurer pays only if the policyholder is legally liable.2.Aircraft; watercraft; property in the

6、insureds care, custody, or control; workers compensation; failure of product to perform; war; and pollution.3.Claims-made covers losses occurring after the retroactive date and reported during the policy period. Occurrence covers loss that occurs during the policy period; it may be reported many yea

7、rs later.4.Property damage, bodily injury, and personal injury.5.With professional liability insurance, the insurer often needs the insureds permission to settle the contract; there is one insuring clause, and it covers intentional acts that give rise to unintentional results.6.Commercial umbrellas

8、are purchased to cover large losses. Umbrellas normally provide broad coverage and high limits of liability. They also have underlying coverage.7.Yes, but it will be more expensive.8.They should purchase higher limits because each loss will count toward the yearly aggregate.9.Mr. Wood is protected b

9、y his CGL even though the manufacturer will most likely be held responsible for the damage caused by the furnace.10.a. This claim would be paid under the general liability section of the policy.b.If the washer was in the home of the insured, the claim would be a products liability claim.11.The court

10、 held the insurer liable, stating that the care, custody, and control exclusion applies to essential work done by the insured and not property involved only incidentally. In a similar case, Boswell v Travelers Indemnity, 120A. (2d) 250, the insured had a contract to renovate and replace some heating

11、 units in a building. One unit was damaged by the negligence of the insured in testing the work after completion. A New Jersey court held that the insured was covered because the heating unit was part of the building, and therefore not in the insureds control.12.a. Under strict liability the plainti

12、ff does not have to prove negligence, just that an accident occured and the defendants product caused a loss. The defendant can use the doctrine of negligent use by the plaintiff, but in the case of breast implants it is very difficult for the plaintiff to have access to the implants after they are

13、implanted.b. In the CGL, products coverage is provided if the insured pays the appropriate premium.SUPPLEMENTARY QUESTIONS1.In Great American Indemnity Company of New York v Saltzman, 8 CCH Fire and Casualty Cases 388, an insured had a general liability policy. Without permission, he entered an airp

14、lane belonging to another person to inspect it and started the engine. Because of his unfamiliarity with the controls, the insured could not stop the plane, which crashed into a hangar and caused substantial damage. The insurer refused to defend the insured in the resulting suit for damages. (a) On

15、what grounds is it likely that the insurer relied? Explain, with reference to appropriate policy provisions of the typical business liability policy. (b) Do you think that the defense in part a should be found to be good? Discuss.a.The obvious question is whether or not this was a business act. Busi

16、ness policies cover only liability arising out of the operation of a business, and if this was a personal act not connected with business it would have had to be considered under a comprehensive personal liability policy. Another question is the “care, custody, and control” exclusion. Was the airpla

17、ne in the physical control of the insured and hence excluded under the liability policy? If so, damage to the plane would have been excluded, but perhaps damage to the hangar would have been covered.b.Assuming that the insurer defended on the basis that the insureds act was essentially nonbusiness i

18、n character, the facts would have had to be investigated further to determine whether or not the defense was good. Questions requiring answers include the following: Were planes a part of the insureds business operations? Was the insured on a business trip and was the inspection of the plane a part

19、of this venture? If the care, custody, and control exclusion was the defense used by the insurer, it appears that loss to the plane might be excluded, but not loss to the hangar. There appears to be little similarity to this case and the case cited in the text in which the court held a concrete wall

20、 to be in the care of the insured who was handling a bulldozer.2.On the way to a meeting with a client, an attorney injures a third party in an automobile accident. (a) Does such an occurrence arise out of the attorneys professional practice? If so, would the professional liability respond in damage

21、s? Why? (b) Would your answer be different if the accident occurred because the attorney and client were discussing a legal question while driving and, as a result of not paying attention to driving, the attorney caused the accident? Discuss.a.The question of professional versus nonprofessional negl

22、igence is raised here. The malpractice policy covers only professional errors, and the attorney still needs general liability insurance.b.It is doubtful if the fact that the accident resulted from lack of attention by the attorney who is discussing a professional matter with a client would make any

23、difference. The attorney needs automobile insurance, too.3.The city of Y hires a contractor, C, to perform some work, and specifies that C name Y as an additional insured under his CGL. Y also requires C to sign a hold-harmless agreement to the effect that C will assume any liability that Y might have arising out of the work that C is performing. C points out that such an agreement is unnecessary and, in fact, dangerous because the city would in effec