Basics of Liability Insurance Policies

This agreement pays legally obligated compensation to 3rd parties for losses in policy period & territory
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Terms in this set (19)
These are damages that are unquantifiable (ex. pain and suffering)General damages (Insurable)These are out-of-pocket expenses that can be proven (ex. Medical expenses)Special damages (Insurable)These damages are not insurablePunitive (Punish offenders), Exemplary (Make examples of), Nominal (Suits that establish right or wrong with no damage)What does it mean when they say the coverage is provided on an occurrence basis?It means the policy in force at the time of the loss is the one that pays. (chemical leak in 2008, claim was brought to the insurer in 2018, the 2008 policy will pay for that loss)Definition: This is an accident that includes long term exposureOccurrenceThis describes an event that was sudden and unexpected, occurs at a particular point in time (IE: car crash)AccidentThis describes something that occurs over a long period of timeContinues ExposureWhat are the duties of the insured in the event of a claim or occurrence?(PALAC) - Prompt notice to insurer of any occurrence that might lead to a claim in the event of an occurrence or claim: - Assist in investigation, settlement or defence - Legal papers must be immediately forwarded to insurer (has time limit to respond) - Authorize insurer to obtain info (police reports, etc.) - Can't make voluntary payment other than first aid (except at own cost)Cost of defence + expenses of insured to assist + court costs + interest payable are considered what additional payments?Supplementary payments