Scheda di revisione: Casualty and Liability Insurance Fundamentals

Casualty and Liability Insurance Policies - Revision Sheet

1. 📌 Essentials

• Casualty & liability insurance cover legal liabilities for damages or injuries caused to third parties.
• Auto liability pays for bodily injury and property damage, with limits split or combined.
• UM/UIM cover injuries from uninsured/underinsured drivers.
• Commercial auto excludes truckers; covers autos.
• Garage coverage insures auto dealers/repair shops, including garagekeepers.
• CGL covers bodily injury, property damage, and personal injury.
• BOP combines property and liability, not monoline.
• Workers compensation provides no-fault coverage for work-related injuries.
• Crime policies can be discovery or loss-sustained forms.
• ** liability** protects against errors, malpractice, D&O, cyber.
• Umbrella/excess policies extend limits, with underlying policy requirements.
• Bonds guarantee performance (surety) or honesty (fidelity).

2. 🧩 Key Structures & Components

• Auto Policy Parts:
  • A: Liability
  • B: Medical Payments
  • C: UM/UIM
  • D: Damage to Auto
  • E: Duties after Accident
  • F: Provisions
• Auto Types:
  • Owned, Nonowned, Hired, Temporary substitute.
• Commercial Auto Sections:
  • I: Covered autos
  • II: Liability
  • III: Physical Damage
• Garage Coverage:
  • Operations, Garagekeepers, Physical Damage.
• Liability Coverages:
  • CGL: Bodily injury, property damage, personal injury.
  • BOP: Similar, with property coverage.
• Workers Compensation:
  • Employer’s liability, medical, wage replacement.
• Crime Policies:
  • Discovery: during policy period.
  • Loss-sustained: within policy or extended period.
• Professional Liability:
  • Errors & Omissions, Malpractice, D&O, Cyber.
• Umbrella/Excess:
  • Standalone or follow-form, higher limits.
• Bonds:
  • Surety (performance), Fidelity (employee honesty).

3. 🔬 Functions, Mechanisms & Relationships

• Auto liability defends and pays damages, limits split or combined.
• UM/UIM fill gaps for uninsured/underinsured drivers.
• Damage to auto covers collision and other-than-collision losses.
• Duties after accident: notify, cooperate, protect property.
• Commercial auto excludes trucking; covers business vehicles.
• Garage coverage insures auto dealers, repair shops, with garagekeepers for customer autos.
• Liability policies: protect insured from third-party claims.
• Workers comp: no-fault, exclusive remedy, premiums based on classification.
• Crime policies: trigger based on occurrence or loss date.
• Professional liability: claims-made, covers errors, malpractice.
• Umbrella/excess: provide higher limits, require underlying policies.
• Bonds: guarantee performance or honesty, with penalty limits.
• Coverage triggers: occurrence, claim, or loss date depending on policy.

4. 📊 Comparative Table

Item	Key Features	Notes / Differences
Auto Liability	Bodily injury, property damage, defense costs	Limits: split or single
Medical Payments	Medical/funeral expenses within 3 years	From liability or UM/UIM
UM/UIM	Bodily injury from uninsured/underinsured drivers	UIM limit = UIM limit – BI limit
Damage to Auto	Collision/other-than-collision loss	Transportation expenses: 24/48 hrs
Duties After Accident	Notify, cooperate, protect property	Essential for claim validity
Commercial Auto	Covers business autos, excludes truckers	Sections I-V
Garage Coverage	For auto dealers/repair shops, garagekeepers	Damage to customer autos
Workers Compensation	Injuries/diseases from work, no-fault	Exclusive remedy
Crime (Discovery)	Triggered during policy period	Discovery form
Crime (Loss-sustained)	Loss during or extended reporting period	Loss-sustained form
Professional Liability	Errors, malpractice, D&O, cyber	Claims-made basis
Umbrella/Excess	Higher limits, follow form or standalone	SIR applies, underlying policies needed
Bonds	Performance (surety), honesty (fidelity)	Penalty limits

5. 🗂️ Hierarchical Diagram

Casualty & Liability Insurance
 ├─ Auto Insurance
 │    ├─ Policy Parts (A-F)
 │    └─ Types of Auto
 ├─ Commercial Auto & Garage
 ├─ Individual & Drive Other Car
 ├─ Commercial General Liability
 ├─ Businessowners Policy
 ├─ Workers Compensation
 ├─ Crime Program
 ├─ Professional Liability
 ├─ Umbrella & Excess Liability
 └─ Bonds

6. ⚠️ High-Yield Pitfalls & Confusions

• Confusing split limits ($100K/$300K/$50K) with single limits.
• Overlooking waiting periods: 24 hrs for collision, 48 hrs for other-than-collision.
• Misunderstanding coverage triggers: occurrence vs. loss-sustained.
• Assuming umbrella policies replace underlying coverage—must be maintained.
• Mistaking fidelity bonds for performance bonds.
• Ignoring exclusions: intentional injury, pollution, war, professional errors.
• Forgetting SIR applies to umbrella and fidelity policies.
• Confusing discovery and loss-sustained crime forms.
• Overlooking underlying policy requirements for umbrella/excess.
• Misinterpreting coverage limits: aggregate vs. per occurrence.

7. ✅ Final Exam Checklist

• Know the parts of auto policies (A-F) and their coverage.
• Understand limits: split vs. single, and how they apply.
• Memorize waiting periods for damage expenses.
• Distinguish between UM and UIM coverages.
• Recognize types of auto: owned, nonowned, hired, temporary.
• Know exclusions common to liability and property policies.
• Be familiar with coverage triggers: occurrence, claim, loss.
• Understand underlying policies required for umbrella/excess.
• Know coverage scope of CGL and BOP.
• Recognize workers comp's exclusive remedy and premium basis.
• Differentiate discovery vs. loss-sustained crime policies.
• Understand professional liability claims-made basis.
• Know bond types: surety (performance) and fidelity (employee honesty).
• Be aware of policy territory and termination rights.

End of Revision Sheet