Study guide
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability
Arkansas Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Arkansas Property & Casualty Insurance Exam Overview
Arkansas Property & Casualty Exam Overview
3 National Portion: Insurance Fundamentals
1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority
4 National Portion: Property Insurance Concepts
2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses
5 National Portion: Dwelling Policies (DP)
3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage
6 National Portion: Homeowners Policies - Forms & Section I
4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)
8 National Portion: Personal Auto Policy - Liability & Injury
6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists
9 National Portion: Personal Auto Policy - Physical Damage & Duties
7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts
10 National Portion: Liability Insurance Concepts
8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury
11 National Portion: Commercial Property Insurance
9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP
12 National Portion: Commercial General Liability - Coverages
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments
13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions
11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements
14 National Portion: Commercial Auto Insurance
12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements
15 National Portion: Workers Compensation
13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements
16 National Portion: Other Commercial Lines - BOP, Crime & Marine
14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)
17 National Portion: Other Commercial Lines - Specialty & Professional
15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability
18 National Portion: Other Commercial Lines - Surety, Flood & Specialty
16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines
19 National Portion: Insurance Regulation & Market Conduct
17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations
20 National Portion: Ethics & Unfair Trade Practices
18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection
21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing
1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities
22 Chapter 2: Arkansas Property Insurance
2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance
23 Chapter 3: Arkansas Casualty & Auto Insurance
3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance
24 Chapter 4: Arkansas Ethics & Professional Conduct
4.1 Ethical Practices and Consumer Protection
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability
Key Takeaways Explain This Topic AI
Coverage A pays damages the insured is legally obligated to pay for third-party bodily injury or property damage caused by an occurrence in the coverage territory.
The occurrence form (CG 00 01) triggers on when injury happens; the claims-made form (CG 00 02) triggers on when the claim is first made and requires a retroactive date.
Electronic data is NOT tangible property under CG 00 01 04 13 - a common exam trap.
The CGL has six limits; the general aggregate caps Coverage A (except products-completed ops), B, and C combined, while products-completed ops has its own aggregate.
Default sublimits: Damage to Premises Rented to You $100,000 and Coverage C Medical Expense $5,000 per person.
Last updated: June 2026
The CGL Form and Coverage A
The Commercial General Liability (CGL) policy is built on the ISO CG 00 01 Commercial General Liability Coverage Form (occurrence) and the ISO CG 00 02 form (claims-made). The current widely used edition is CG 00 01 04 13 (the 04 13 edition is the most-tested baseline; exam writers may also reference 12 07). The CGL is the cornerstone casualty policy for businesses, covering liability the insured assumes for harm to third parties arising out of the insured's premises, products, completed work, and operations.
The CGL contains three insuring agreements, each lettered:
- Coverage A - Bodily Injury and Property Damage Liability
- Coverage B - Personal and Advertising Injury Liability
- Coverage C - Medical Payments
Coverage A is the heart of the policy. It pays sums the insured becomes legally obligated to pay as damages because of bodily injury (BI) or property damage (PD) caused by an occurrence that takes place in the coverage territory during the policy period.
Key Coverage A definitions
Occurrence means an accident , including continuous or repeated exposure to substantially the same general harmful conditions. The accident need not be a single sudden event - ongoing exposure (e.g., slow leakage) can qualify. This is the trigger distinction from the claims-made form.
Bodily injury means bodily injury, sickness, or disease sustained by a person, including death resulting from any of these at any time. Pure emotional distress without physical manifestation is generally NOT BI under the standard form.
Property damage means (1) physical injury to tangible property, including resulting loss of use; or (2) loss of use of tangible property that is not physically injured. Electronic data is expressly NOT tangible property under CG 00 01 04 13 - a frequent exam trap.
Insured contract is a defined term that restores coverage for certain assumed liability (leases, easements, sidetrack agreements, and the tort liability of another assumed in a business contract). Liability assumed outside an insured contract is excluded.
Occurrence vs. claims-made trigger
The occurrence form (CG 00 01) responds when the BI or PD occurs during the policy period, regardless of when the claim is reported - even years later. The claims-made form (CG 00 02) responds only when the claim is first made during the policy period (or an extended reporting period), and the injury must occur on or after the retroactive date .
- Feature Occurrence (CG 00 01) Claims-made (CG 00 02)
- Trigger Injury happens in period Claim first made in period
- Retroactive date None Required
- Tail coverage Not needed Basic + Supplemental ERP available
- Long-tail exposure Higher insurer risk Easier to reserve
Claims-made policies offer a Basic Extended Reporting Period (ERP) automatically (mini-tail, generally 60 days to report, 5 years for occurrences in last 60 days) and a Supplemental ERP (full tail) that must be purchased.
Limits of insurance - the six CGL limits
The CGL Declarations show six limits. Memorize how the aggregates restore and which payments erode which limit:
General Aggregate Limit - most paid for all Coverage A (except products-completed operations), all Coverage B, and all Coverage C combined during the policy period.
Products-Completed Operations Aggregate Limit - a separate aggregate for products/completed-operations BI and PD.
Personal and Advertising Injury Limit - per person/organization (Coverage B).
Each Occurrence Limit - most for the sum of A BI/PD plus C medical payments from one occurrence; capped by the applicable aggregate.
Damage to Premises Rented to You Limit - default $100,000 any one premises (fire and, in the 04 13 edition, certain other perils for premises rented or temporarily occupied).
Medical Expense Limit (Coverage C) - default $5,000 any one person.
The aggregates reset only at renewal, not when partially exhausted.
Worked example - aggregate erosion
A contractor has a CGL with a $1,000,000 each occurrence limit and a $2,000,000 general aggregate . During the year three covered premises/operations occurrences are paid: $700,000, $600,000, and $900,000.
Each loss is within the $1,000,000 each-occurrence limit, so the occurrence limit never caps a single loss.
Running total of paid claims: 700,000 + 600,000 = 1,300,000; then the third loss of $900,000 would bring the total to $2,200,000.
The general aggregate caps total Coverage A (premises/ops) payments at $2,000,000 . So the third loss is paid only up to the remaining aggregate: $2,000,000 - $1,300,000 = $300,000 .
The insured absorbs the uninsured $600,000 on that third loss. Note products-completed operations losses would draw on the separate products-completed ops aggregate, not the general aggregate - they would not be capped by this $2,000,000.
Coverage A exclusions to memorize
Coverage A contains a long list of exclusions (lettered a through q in CG 00 01). The most heavily tested:
Expected or intended injury - BI/PD the insured expected or intended (self-defense carve-back for protecting persons/property).
Contractual liability - liability assumed in a contract, except an 'insured contract' or liability the insured would have without the contract.
Liquor liability - applies only if the insured is in the business of manufacturing, selling, serving, or furnishing alcohol (host liquor is not excluded).
Workers compensation and Employers liability - obligations under WC laws and BI to employees in the course of employment.
Pollution - the broad absolute pollution exclusion.
Auto, aircraft, watercraft - liability arising from ownership or use of these (with limited carve-backs for parking and small watercraft).
Damage to your product, your work, and impaired property - the 'business risk' exclusions (j, k, l, m) that push faulty-workmanship cost back onto the contractor rather than the CGL.
These business-risk exclusions reflect the core principle that the CGL covers liability for damage caused by the work, not the cost of redoing defective work itself .