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75 Cards in this Set
- Front
- Back
- 3rd side (hint)
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___ liability establishes that one can be held legally liable for the acts of another, such as a principal for the acts of its agents. |
vicarious
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Ch 5 Retention Questions
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Under ___ by Equal Shares, each insurer pays equally until the loss is paid or limits exhausted.
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contribution
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Ch 5 Retention Questions
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Would Bodily Injury Coverage also include a breach of contract?
Yes or No |
No
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Ch 5 Retention Questions
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___ Liability is the legal doctrine that holds a manufacturer legally liable for injuries to a customer whether or not the manufacturer's product was defective.
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strict
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Ch 5 Retention Questions
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When the limits of bodily injury and property damage are specified seperately, they are known as ___ limits.
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split
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Ch 5 Retention Questions
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___ Defenses in liability insurance are determined by the legislature.
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statutory
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Ch 5 Retention Questions
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An unendorsed liability policy provides coverage for ___ torts.
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unintentional
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Ch 5 Retention Questions
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Exclusions may deny coverage for certain locations as well as certain persons.
True or False |
True
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Ch 5 Retention Questions
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The statement that the insurer will pay those sums that the insured becomes legally obligated to pay is located in the ___ ___ part or portion of the policy.
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insuring agreement
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Ch 5 Retention Questions
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The largest potential for financial loss rests with ___ exposures.
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liability
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Ch 5 Retention Questions
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An insured has a liability policy with a $300,000 limit. The insured incurs $50,000 of defense costs. How much is available to pay for any judgement?
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$300,000
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Ch 5 Retention Questions
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In establishing negligence in liability insurance, it helps if the claimant can prove the act was intentional.
True or False |
False
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Ch 5 Retention Questions
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Under ___ negligence, damages are reduced in proportion to the degree of negligence.
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comparative
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Ch 5 Retention Questions
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___ negligence, under common law, denies recovery for damages caused by a negligent party if the claimant was also negligent.
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contributory
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Ch 5 Retention Questions
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What liability-related term best describes the scenario whereby a person who daily inhales airborne fiberglass particles ultimately is afflicted with severe respiratory complications?
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occurrence
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Ch 5 Retention Questions
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Bodily injury claims may include loss of earnings.
True or False |
True
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Ch 5 Retention Questions
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Under a liability policy, an assignment of interest takes effect after the ___ consents.
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Insurer
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Ch 5 Retention Questions
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Under Comparative Negligence, damages awarded vary depending on each state's statutes.
True or False |
True
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Ch 5 Retention Questions
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Under a liability policy, exclusions are found in the conditions.
True or False |
False
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Ch 5 Retention Questions
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When a stairway does not contain enough lighting, the owner has not fulfilled the required standard of care.
True or False |
True
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Ch 5 Retention Questions
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A person is obligated to a certain standard of conduct for the protection of others by legal duty.
True or False |
True
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Ch 5 Retention Questions
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Do specific damages include pain and suffering?
yes or no |
No
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Ch 5 Retention Questions
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Supplementary payments are not paid in addition to other limits of liability.
True or false |
False
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Ch 5 Retention Questions
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Personal injury includes bodily injury.
True or False |
False
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Ch 5 Retention Questions
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What is the policy called that pays first with respect to other policies?
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primary
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Ch 5 Retention Questions
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Does the definition of a business in an insurance policy include "hobby"?
yes or no |
no
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Ch 5 Retention Questions
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The dissemination of any written or printed material tending to unjustly injure a person's reputation, defines ____.
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Libel
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Ch 5 Retention Questions
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The process whereby an insurer seeks to recover against a third party that has caused it to pay a claim to its insured is known as ___.
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subrogation
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Ch 5 Retention Questions
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Liability insurance is sometimes referred to as:
A. necessary insurance B. Two-party insurance C. Third-party insurance D. Just-in-case insurance |
C
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Ch. 3 slides
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An undendorsed liability policy is designed to provide coverage for which of the followin?
A. Intentional torts B. Wrongful liability C. Unintentional torts D. Everything except torts |
C
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Ch. 3 slides
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Bodily harm, sickness, or disease, including resulting death is the definition of ___?
A. Personal Injury Coverage B. Vicarious liability coverage C. Bodily Injury Coverage D. Third Part coverage |
C
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Ch. 3 slides
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Payments for necessary medical expenses that are made regardless of the insured's legal liability are covered under which of the following liability coverages?
A. bodily injury B. medical payments C. punitive damages D. personal injury |
B
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Ch. 3 slides
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Which of the following documents verifies how and when a loss occurred and includes the amount of damages?
A. proof of loss B. notice of loss C. occurence notice D. certificate of insurance |
A
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Ch. 3 slides
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Negligence is:
A. A legal duty B. An accident C. A personal duty D. a tort |
D
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Ch. 3 slides
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Which of the following prevents recovery for damages by a negligent party who was also negligent?
A. assumption of risk B. contributory negligence C. intervening cause D. comparative negligence |
B
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Ch. 3 slides
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In liability insurance, if two policies are in place and Company b's policy will pay only after Company A's policy will pay, what type of insurance is Company B's liability policy?
A. Excess B. Pro-rata C. Non-concurrent D. Non-contributory |
A
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Ch. 3 slides
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The amount of coverage provided for a particular type of coverage is referred to as the;
A. per occurence limit B. limit of liability C. restoration limit D. maximum limit |
B
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Ch. 3 slides
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What is the term used for the total amount of insurance available in a policy year?
A. restoration limit B. liberalization C. subrogation D. aggregate |
D
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Ch. 3 slides
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Is damage caused by flood and tidal waters generally excluded from coverage under all Dwelling Forms?
yes or no |
yes
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Ch. 2 retention questions
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At the insured's request, Coverage C ___ ___ will cover personal property of a guest or servant while on the described premisis.
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personal property
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Ch. 2 retention questions
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The ___ ___ ___ ___ Endorsement provides inflation protection when attached to a dwelling policy.
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automatic increase in insurance
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Ch. 2 retention questions
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Under a DP-3 (Special Form), fixtures that are part of a dwelling which is not under construction or that has not been vacant for more than 30 days are covered for theft.
True or False |
True
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Ch. 2 retention questions
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Smoke damage caused from nearby industrial operations (is/is not) covered under a DP-2 (broad Form).
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is not
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Ch. 2 retention questions
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The covered causes of loss constitute the major differences between the Dwelling Forms.
True or False |
true
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Ch. 2 retention questions
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The DP-1 (Basic Form) applies coverage to property that is removed because it is endangered by a covered peril.
True or False |
true
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Ch. 2 retention questions
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Coverage C under the Dwelling Forms extends to include personal property of a tenant or boarder of the insured.
True or False |
false
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Ch. 2 retention questions
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In the event of a loss, the DP-2 (Broad Form) pays for the damage to the dwelling on a ___ ___ basis.
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replacement cost
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Ch. 2 retention questions
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Farm dwellings are eligible to be written under the Dwelling Forms.
True or False |
False
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Ch. 2 retention questions
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The ___ ___ ___ adds coverage for bodily injury and property damage liability when attached to the Dwelling Forms.
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personal liability supplement
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Ch. 2 retention questions
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The Earth Movement Exclusion does not exclude damage by an explosion that ensues from the earth movement.
True or False |
True
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Ch. 2 retention questions
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A Dwelling Form that has an Automatic Increase in Insurance Endorsement attached in the amount of 4% is written for $40,000 on January 1st. There is a loss to the dwelling that same year on July 1st. What is the limit of insurance on the dwelling at the time of the loss?
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$40,800
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Ch. 2 retention questions
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Under the Dwelling Forms, is it permissible for the insured to rent a private garage to another for garage purposes?
yes or no |
yes
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Ch. 2 retention questions
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The land under the dwelling is not covered as a part of Coverage A (Dwelling) under the Dwelling Forms.
true or false |
true
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Ch. 2 retention questions
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Does a detached garage that is used to store commercial equipment qualify for coverage under Coverage B (Other Structures) of the Dwelling Forms?
yes or no |
no
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Ch. 2 retention questions
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Under the Broad Theft Endorsement, is off-premisis coverage allowed without the purchase of on-premisis coverage?
yes or no |
no
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Ch. 2 retention questions
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When adding the Dwelling Under Construction Endorsement to the Dwelling Forms, premium is based on an average amount of insurance during construction.
true or false |
true
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Ch. 2 retention questions
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All of the following are eligible for coverage on the Dwelling property forms, EXCEPT?
A. Dwellings with four apartment units B. Dwellings with insidental business occupancies C. Dwellings located on farms D. Permanently located mobile homes |
C
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Ch. 4 slides
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VMM losses on the DP-1 are excluded if the dwelling has been vacant for how many consecutive days?
A. 10 days B. 30 days C. 45 days D. 60 days |
D
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Ch. 4 slides
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The DP-2 Broad Form provides loss settlement for dwellings on which of the following basis?
A. actual cash value B. Replacement value C. agreed value D. stated value |
B
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Ch. 4 slides
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The DP-3 form pays losses to the dwelling and other structures on what basis?
A.actual cash value B.replacement value C.stated D.cash value |
B
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Ch. 4 slides
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Coverage A includes all of the following in the Dwelling forms EXCEPT?
a. the dwelling b. land on which the dwelling is located c. equipment used to service location d. structures attached to the dwelling |
B
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Ch. 4 slides
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Coverage C includes all of the following in the Dwelling forms EXCEPT?
a. personal property of a tenant b. personal property of a guest c. personal property of the named insured d. personal property of resident relatives |
A
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Ch. 4 slides
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Which of the following coverages is NOT provided on a DP-1?
A. dwelling B. personal property C. fair rental value D. additional living expense |
D
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Ch. 4 slides
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Which of the following is true concerning the Other Coverage, Property removed?
A. the DP-1 provides coverage for 10 days B. the DP-2 provides coverage for 30 days C. the Dp-3 provides coverage for 45 days D. the DP-1 provides coverage for 30 days |
B
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Ch. 4 slides
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All of the following are covered under the Other Coverage, Trees, Shrubs, and Other Plants, EXCEPT:
a. damage caused by the neighbor's car b. damage caused by vandalism c. damage caused by weight of snow d. $300 damage to one tree |
C
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Ch. 4 slides
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Forms DP-2 and a DP-3 would cover which of the following under Other Coverages?
a. collapse due to the weight of the snow collecting on the roof b. collapse due to cracking of the basement wall c. collapse due to settling of the foundation d. collapse due to soil expansion |
A
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Ch. 4 slides
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Which of the following sections of the Dwelling policy provides coverage for property damaged in transit between an old and new residence?
a. dwelling b. other structures c.personal property d. fair rental value |
C
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Ch. 4 slides
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The DP-2 Broad Form excludes coverage for all the following, EXCEPT?
a. boarders b. tenants c. guests d. roomers |
C
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Ch. 4 slides
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On what form is personal liability insurance provided in the Dwelling program/
a. Personal Liability Supplement b. Extended Liability Supplement c. DP-2 d. DP-3 |
A
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Ch. 4 slides
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Which of the following Other Coverages is provided on the DP-2 and DP-3 but NOT on the DP-1?
a. debris removal b. fire dept service charge c. reasonable repairs d. collapse |
D
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Ch. 4 slides
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On what basis are losses to the dwelling, other structures, and personal property paid on a DP-1?
a. actual cash value b. agreed value c. stated value d. replacement value |
A
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Ch. 4 slides
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Coverage A - Dwelling includes all of the following, EXCEPT?
a. structures attached to the dwelling b. materials and supplies on or next to the described location for construction or repair of the dwelling c. building equipment and outdoor equipment used to service the dwelling d. the land on which the dwelling is located |
d
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Ch. 4 slides
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What additional coverage is provided in a DP-3 that is not included in a DP-1?
a. collapse b. fire dept service charge c. world-wide coverage d. other structures |
a
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Ch. 4 slides
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Which of the following perils is included in the DP-2 and DP-3 but NOT in the DP-1?
a. sprinkler leakage b. sink hole collapse c. falling objects d. earthquake |
c
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Ch. 4 slides
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Which of the following is true of theft in all the dwelling property forms?
A. is covered under DP-3 only B. has a $1,000 limit C. is automatically provided d. is excluded |
d
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Ch. 4 slides
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