Commercial Insurance Guide (CDI Form 700)
Published by California Department of Insurance. Jurisdiction CA.
Exactly what this source supports
These are the only claims this record is used to carry anywhere in the library.
The guide's glossary entry headed 'Claims Made' reads: a liability insurance policy where coverage applies to claims filed during the policy period no matter when the loss occurred subject to a retroactive inception date.
claim ca-cdi-commercial-insurance-guide#c1The guide's glossary entry headed 'Occurrence' reads: a liability insurance policy that covers claims arising out of occurrences that take place during the policy period, regardless of when the claim is filed.
claim ca-cdi-commercial-insurance-guide#c2CDI states that there are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.
claim ca-cdi-commercial-insurance-guide#c3CDI describes CGL coverage as comprehensive in nature, covering all hazards within the scope of the insuring agreement that are not otherwise excluded.
claim ca-cdi-commercial-insurance-guide#c4CDI states that the major exclusions under a CGL policy include intentional injury; insured contracts; liquor liability; workers compensation and employers liability; pollution; aircraft; automobile; watercraft; mobile equipment; war; care, custody, and control; damage to your work; impaired property; sistership liability; and failure to perform.
claim ca-cdi-commercial-insurance-guide#c5CDI describes specified perils as consisting of a list of each peril to be insured against, such as fire, explosion, windstorm and vandalism, and describes open perils coverage as covering all losses unless they are specifically excluded.
claim ca-cdi-commercial-insurance-guide#c6CDI states that earth movement (including earthquake) and flood are two common perils that are excluded under open perils coverage.
claim ca-cdi-commercial-insurance-guide#c7CDI describes three commercial property valuation approaches: actual cash value, agreed value, which it says waives any coinsurance penalty and pays 100 percent of the stated amount, and replacement cost, which it describes as the amount it takes to replace property with new property of like kind and quality up to the limits of insurance.
claim ca-cdi-commercial-insurance-guide#c8CDI describes coinsurance as an insurance clause that defines the amount of each loss the company pays according to the amount of insurance carried divided by the amount of insurance required, and states that a policyholder can be subject to a monetary penalty at the time of a loss where a building is not insured to value.
claim ca-cdi-commercial-insurance-guide#c9CDI states that business interruption coverage replaces lost business income after a covered loss.
claim ca-cdi-commercial-insurance-guide#c10CDI describes a Business Owners Policy (BOP) as a combination commercial policy that covers property, general liability and business interruption.
claim ca-cdi-commercial-insurance-guide#c11CDI states that when a business has had three applications turned down from a licensed commercial insurance carrier, with written documentation of the declination, it can proceed to obtain insurance from the surplus line market.
claim ca-cdi-commercial-insurance-guide#c12CDI states that a surplus line company can only be accessed through a specially licensed broker who holds a surplus line license issued by the CDI.
claim ca-cdi-commercial-insurance-guide#c13CDI states that although surplus line insurers must follow the Fair Claims Settlement Practices Regulations, the CDI has limited jurisdiction over the operation of surplus line insurers.
claim ca-cdi-commercial-insurance-guide#c14CDI states that the California Insurance Guarantee Association (CIGA), which protects claims with admitted insurers, does not apply to surplus line insurers.
claim ca-cdi-commercial-insurance-guide#c15There are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.
claim ca-cdi-commercial-insurance-guide#c16Premises liability covers liability for accidental injury or property damage that results from either a condition on your premises or your operations in progress, whether on or away from your premises.
claim ca-cdi-commercial-insurance-guide#c17A products liability hazard exists for any business that manufactures, sells, handles, or distributes goods or products.
claim ca-cdi-commercial-insurance-guide#c18Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work.
claim ca-cdi-commercial-insurance-guide#c19The CGL policy has separate limits of insurance for general liability, fire legal liability, products and completed operations liability, advertising and personal liability, and medical payments.
claim ca-cdi-commercial-insurance-guide#c20The page carries the line Form 700 Revised June 14, 2024.
claim ca-cdi-commercial-insurance-guide#c21The guide states that inland marine is a specialized type of property insurance that primarily covers damage to or destruction of your business property while in transport.
claim ca-cdi-commercial-insurance-guide#c22The guide states that inland marine insurance can cover a variety of transportation exposures, however it does not cover boating transportation, which is covered under ocean marine insurance.
claim ca-cdi-commercial-insurance-guide#c23The guide states that some of the most common types of coverage offered are accounts receivable insurance, consignment insurance, equipment floaters (i.e., contractors equipment), installation floaters, motor truck cargo insurance, trip transit insurance, and valuable papers (records) insurance.
claim ca-cdi-commercial-insurance-guide#c24The guide states that standard perils in inland marine may include fire, lightning, windstorm, flood, earthquake, landslide, theft, collision, derailment, overturn of the transporting vehicle, and bridge collapse.
claim ca-cdi-commercial-insurance-guide#c25The guide states that commercial property insurance can protect a business owner from some of the most common losses experienced by business owners, such as property damage, business interruption, theft, liability, and worker injury.
claim ca-cdi-commercial-insurance-guide#c26The guide states that an aggregate limit of liability is in force for the general liability, fire legal liability, advertising and personal liability, and medical payments claims.
claim ca-cdi-commercial-insurance-guide#c27The guide states that when total claims for all these areas exceed a stated annual aggregate limit of liability, the policy limits are exhausted and no more claims will be paid from the policy for the duration of the policy period.
claim ca-cdi-commercial-insurance-guide#c28The guide states that there is also a separate aggregate limit of liability in force for products and completed operations liability claims.
claim ca-cdi-commercial-insurance-guide#c29The guide defines split limits as the technique for expressing limits of liability coverage under a particular insurance policy by stating separate limits for different types of claims growing out of a single event or combination of events.
claim ca-cdi-commercial-insurance-guide#c30The guide states that if a building is not insured to value the insured can be subject to a monetary penalty at the time of a loss, commonly referred to as coinsurance, and defines coinsurance as an insurance clause that defines the amount of each loss that the company pays according to the amount of insurance carried, divided by the amount of insurance required.
claim ca-cdi-commercial-insurance-guide#c31The guide states that the California Insurance Guarantee Association (CIGA), which protects claims with admitted insurers, does not apply to surplus line insurers.
claim ca-cdi-commercial-insurance-guide#c32The guide states that while surplus line companies are not licensed by the CDI, they do have to go through an approval process that includes providing evidence of minimum capital and surplus requirements.
claim ca-cdi-commercial-insurance-guide#c33
Each claim above has its own address. Link to a single claim with/sources/ca-cdi-commercial-insurance-guide#c1, and read the same list with its identifiers, checksums and dates at ca-cdi-commercial-insurance-guide.json. A checksum lets you tell whether a claim you cited still says what it said.
Pages that cite this source
What is a claims-made retroactive date?
What is the difference between general liability and professional liability?
What is inland marine insurance used for?
Why can two insurance policies with the same limit protect differently?
Commercial General Liability (CGL)
Commercial Property Insurance
Contract Insurance Requirements (4 checks)
Workers Compensation Classification (2 checks)
Reviewer notes
Fetched 2026-08-31 and both glossary entries read off the page. The '?page=3' query parameter used in the earlier draft is inert and has been dropped from the URL. publishedDate is taken from the page's own 'Form 700 Revised June 14, 2024' marker. This is a consumer guide glossary and the weakest authority in the bundle; it is cited only for the two trigger definitions. It does not address retroactive dates, extended reporting periods, or which lines are written on which trigger. Published: 2024-06-14 Effective: 2024-06-14