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Conditions to pay damages
- insured must be legally obligated to pay
- must result from BI or PD as defined in policy
- must be caused by an occurrence
- must occur during the policy period
- must not be known before the policy period
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Types of damages awarded by a court
- special damages: out-of-pocket costs such as medical expense or loss of earnings
- general damages: intangibles such as pain and suffering
- punitive damages: punish or make example of wrong-holder
- some states don't recognize punitive damages, and others don't permit the insurer to pay those
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BI and PD definitions
- BI: bodily injury, sickness or disease, including death resulting from any of these at any time
- includes damages for care, loss of services, death
- PD: physical injury to tangible property, including loss of use; loss of use of tangible property that is not physically injured
- electronic data is not tangible property
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Coverage Territory
- territory applying to most claims is US & territories, Puerto Rico, and Canada
- includes international waters and airspace in the course of travel between 2 insured places
- can be extended to include the whole world for goods and products and activities, if the suit is made in a covered territory
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Continuous injury trigger
injury or damage is deemed to occur continuously over time as long as injury continues, thus triggering coverage under all occurrence-based policies that were in effect throughout the course of the injury
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