In the Dec Page, the question of the month deals with the meaning of the word “claim”. Under a claims-made policy, coverage is usually triggered when a claim is first made against the insured. In disputes over when a claim was first made, parties sometimes take differing views of what the word “claim” means. This is particularly likely to happen if the underlying dispute developed gradually, escalating through a series of contacts and confrontations before emerging as a full-blown lawsuit. At what point in that sequence of events was an actual claim, in accordance with the meaning in the insurance policy, first made? And, just what constitutes a claim?

For the answers to these questions and for guidelines as to what a claim is and is not when it comes to insurance policies, link onto the designated article in the FC&S Bulletins.

The cases discussed in the Dec Page pertain to disputes over actual cash value, faulty workmanship, who is an insured under an auto policy, and coverage for musical equipment under a homeowners policy.

Questions and Answers

We have all seen parades that include miniature vehicles. Does the CGL form provide coverage for these? See Mobile Equipment used in Stunting Activity?. An unusual loss involving a towed race car is also discussed. See Garagekeepers Legal Liability and Direct Coverage.

“Fraudulent acts” can involve either actual fraud or constructive fraud. Which is covered, and which excluded, asks a subscriber. See Fraudulent Acts Covered by Professional Liability Insurance?. Is the start-up phase of production tantamount to “testing” for the boiler and machinery coverage exclusion? See Boiler and Machinery Damage by Testing Excluded?.

We also address a question as to whether a leased auto is an “owned auto” for commercial auto coverage purposes. See Leased Auto Covered as Owned Auto?.

Product Withdrawal Coverage Form

The Insurance Services Office (ISO) has introduced the product withdrawal coverage form, CG 00 66 12 04 in order to provide coverage for damages claimed for any loss, cost, or expense incurred for the withdrawal of the named insured's product from the market. This article offers an analysis of the product withdrawal coverage form, its insuring agreements, exclusions, conditions, and definitions. Endorsements that can be used with the form are also described. See Product Withdrawal Coverage Form.