General liability HELP !!

General liability HELP !!

by Stephanie Tirado -
Number of replies: 4
I am so confused with these two questions and can't seem to understand it I don't want to move onto the next unit without completely understanding this .. Please explain how these answers are correct and why ? Question 1 - joe buys a occur since CGL 1/1/03 he buys a claims made CGL 1/1/04 and renews it on 1/1/05 . The 1/1/05 policy has a retrodate to 1/1/04. An injury from 8/1/03 turns up in 2005 when a claim is made. Which policy covers the 8/1/03 injury ? A) 1/1/03 policy B) 1/1/04 policy C) 1/1/05 D)nothing The correct answer was A. ( also stating that occupancies policy covers no matter how much later claim is made if in force at time of injury) Then we have question 2 were it totally threw me off Mr. Hills buys a CGL claims made policy on 1/1/04 with a retroactive of inception 1/1/04. He buys another CGL claims made policy on 1/1/05 with a retrodate of 1/1/05 an injury of 7/1/04 is claimed on 9/1/05 which policy covers ? A) 1/1/04 policy B) 1/1/05 policy C) 1/1/04 primay 1/1/05 excess D) neither policy covers The correct answer was D. Neither covers I'm so lost please explain , thank you !
In reply to Stephanie Tirado

Re: General liability HELP !!

by Kathleen I French -
OH BOY! Now I'm confused again. I hope we get an answer..
In reply to Kathleen I French

Re: General liability HELP !!

by Grisel Padron -

I didn't read the question but when I was confused I just simply reviewed the definitions of Occurrence policy versus Claims-made policy. Occurrence means the injury must occur during the policy period and can be reported any time. Claims-made the injury must occur after the retroactive date and must be reported or recorded during the policy period. Hope that helps. I'll circle back to the question. It was just so much put together it was confusing to look at.........lol.

In reply to Grisel Padron

Re: General liability HELP !!

by Grisel Padron -

First question - The 03 occurrence covers because it occurred in 03 and since it doesn't matter when it was reported with this type of policy, then the 03 covers. The 04 and 05 Claims-made wouldn't cover since the injury occurred before the retroactive date of 1/1/04.

In reply to Stephanie Tirado

Re: General liability HELP !!

by Grisel Padron -

Second question: 2004 injury was reported too late to be covered in the 2004 policy since it was reported in 2005. If it had been reported in '04, the '04 policy would cover. If the injury had occurred in '05 then the '05 would cover. Hope that helps.