Study guide
11.3 Key CGL Exclusions and Endorsements
Arkansas Property & Casualty Insurance State
Track your progress as you read
Finished sections get a check mark.
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
11.3 Key CGL Exclusions and Endorsements
Key Takeaways Explain This Topic AI
Coverage A of CG 00 01 has about 15 exclusions (a-q); high-frequency ones include expected/intended injury, contractual liability, pollution, auto/aircraft/watercraft, and workers' comp.
The contractual-liability exclusion is restored for liability assumed in any of the six defined 'insured contracts.'
The 'business risk' exclusions (j-n) remove the insured's own defective work/product, but resulting damage to others' property remains covered.
The subcontractor exception to the 'your work' exclusion (l) can restore coverage for completed-operations damage caused by a sub.
Key endorsements: CG 20 10/20 37 Additional Insured, Primary & Noncontributory, Waiver of Subrogation (CG 24 04), and the Per Project/Per Location aggregate amendment.
Last updated: June 2026
Why the CGL Excludes So Much
The CGL grants broad coverage and then narrows it with exclusions that (1) bar uninsurable risk, (2) prevent duplicate coverage belonging on another policy, and (3) reduce moral hazard . Coverage A of CG 00 01 carries roughly 15 exclusions , lettered a through q , and Coverage B has its own set. The exam expects you to know the high-frequency exclusions and the narrow exceptions that restore coverage.
Coverage A Exclusions to Master
a. Expected or Intended Injury. BI/PD the insured expected or intended is excluded, except BI from the use of reasonable force to protect persons or property . Trap: the act may be intentional while the injury is not - swinging a hammer is intentional, but accidentally striking a bystander is not an intended injury, so coverage may apply.
b. Contractual Liability. Liability assumed under contract is excluded except (1) liability the insured would have without the contract (its own tort liability), and (2) liability assumed in an 'insured contract.'
c. Liquor Liability. Applies only to insureds in the business of manufacturing, selling, serving, or furnishing alcohol; a host-liquor exposure for an ordinary business is generally not excluded.
The Six 'Insured Contracts'
The contractual-liability exclusion is restored for liability assumed in any of six defined 'insured contracts.' Memorize this list - it appears often:
- Insured contracts (restore coverage)
- Lease of premises
- Sidetrack (railroad) agreement
- Easement or license agreement
- Obligation to indemnify a municipality (other than for the insured's own work)
- Elevator maintenance agreement
- 'Tort liability' assumed in a contract or agreement (the broad hold-harmless)
Pollution, Auto/Aircraft/Watercraft, and Workers' Comp
f. Pollution. The 'absolute' (now 'total') pollution exclusion bars BI/PD arising from the actual or threatened discharge of pollutants - one of the broadest exclusions in the form. A separate environmental/pollution policy is required.
g. Aircraft, Auto, or Watercraft. Excluded because these belong on commercial auto, aviation, or marine policies (preventing duplicate coverage). Narrow exceptions exist for parking and certain small watercraft.
d/e. Workers' Compensation and Employer's Liability. Obligations under workers' comp law, and BI to an employee in the course of employment, are excluded - they belong on the WC and employer's-liability policy.
The 'Business Risk' Exclusions (j-n) - Your Work and Your Product
A cluster of exclusions removes the insured's own defective work or product - the cost of redoing or replacing it is a business risk , not an insurable fortuity. The CGL pays for resulting damage to others , not the repair of the faulty work itself.
j. Damage to Property - includes the 'care, custody, or control' bar.
k. Damage to Your Product - the product itself.
l. Damage to Your Work - your completed work; the exception for work performed by a subcontractor can restore coverage.
m. Damage to Impaired Property - loss of use of property not physically injured because your product/work is defective.
n. Recall of Products ('Sistership') - the cost to withdraw or recall a defective product is excluded; a separate product-recall policy is needed.
Trap: A defective bolt that fails and damages the customer's machine is covered PD (damage to others' property); the cost to replace the bolt itself is excluded under k.
Common Endorsements That Modify the CGL
Endorsement Effect
CG 20 10 / CG 20 37 Additional Insured Adds another party (owner, lessor, contractor) as insured; 20 10 covers ongoing operations, 20 37 covers completed operations
Primary and Noncontributory Makes the named insured's CGL pay first and waives contribution from the additional insured's own coverage
Waiver of Subrogation (CG 24 04) Insurer waives its right to recover from a designated party
Amendment of Aggregate - Per Project/Per Location Provides a separate General Aggregate for each project or location, multiplying available limits
Trap: A Per Project Aggregate endorsement is highly tested - it gives each construction project its own General Aggregate, so a loss on Project A does not erode the aggregate available to Project B.
Coverage B Exclusions and the Knowing-Violation Trap
Coverage B (Personal & Advertising Injury) has its own exclusion list, separate from Coverage A. The most tested Coverage B exclusions bar injury arising from:
Knowing violation of another's rights (intentional wrongdoing).
Publication of material the insured knew was false .
Material first published before the policy period (prior publication).
Breach of contract , other than misappropriation of advertising ideas under an implied contract.
Infringement of patent, trademark, or trade secret - though copyright, trade dress, and slogan infringement in the insured's advertisement remain covered.
Trap: Patent and trademark infringement are excluded , but copyright infringement in an advertisement is covered - a distinction questions exploit constantly.
Reading an Exclusion: Exception Restores Coverage
The structure of every CGL exclusion follows the same logic the exam rewards: a broad grant in the Insuring Agreement, an exclusion that removes a category of risk, and often an exception that gives a slice back. Master the three carve-backs most likely to appear:
Insured-contract exception restores assumed tort liability (the six insured contracts).
Subcontractor exception to the 'your work' exclusion restores completed-operations damage caused by a sub.
Reasonable-force exception to the expected/intended exclusion restores defense-of-persons-or-property claims.
When a question describes an excluded scenario, scan for an exception before concluding there is no coverage - the test writers frequently bury the carve-back in the fact pattern.