Los Angeles Claims Adjuster Property and Causality Practice Exam

When must an insurer be notified about newly acquired property under CGL?

1. Within 30 days of acquisition

2. Within 60 days of acquisition

3. Within 90 days of acquisition

4. Within 120 days of acquisition

The correct answer is: Within 90 days of acquisition

The requirement for notifying an insurer about newly acquired property under a Commercial General Liability (CGL) policy is typically within a specified timeframe, which is often set at 90 days. This means that once an insured party acquires new property, they must inform their insurer within 90 days to ensure coverage. The rationale behind this timeframe aligns with the need for insurers to assess risk and modify coverage accordingly. Timely notification allows the insurance company to evaluate the new asset and decide whether it requires additional premiums, adjustments in policy terms, or even increased coverage limits to manage the risk effectively. This approach ensures that policyholders have the protection they need as their circumstances change, thus safeguarding them against potential gaps in coverage that could arise from delays in notification. Notifying the insurer within this period serves to maintain the integrity and accuracy of the insurance policy, reflecting the current status of the insured's assets.