Question 1

Libel committed by a business can result in a lawsuit that asks the business to pay:

Accepted Answer

A) personal injury damages 
B) bodily injury damages 
C) loss of consortium damages 
D) dram shop benefits 
A) personal injury damages 
B) bodily injury damages 
C) loss of consortium damages 
D) dram shop benefits A

Question 2

If the EEOC does not find an employer guilty of discrimination,the employee must accept its decision without further action against the employer.

Accepted Answer

A) True 
 B)False  False

Question 3

All the following are possible remedies for the products liability problem except:

Accepted Answer

A) a federal uninsured consumer fund for making claims payments 
B) a limit on "pain and suffering" damage claims 
C) an end to contingency fees for lawyers 
D) an end to state of the art evidence to show improvements 
A) a federal uninsured consumer fund for making claims payments 
B) a limit on "pain and suffering" damage claims 
C) an end to contingency fees for lawyers 
D) an end to state of the art evidence to show improvements A

Question 4

Which of the following products would be most likely to create a long-tailed liability exposure?

Accepted Answer

A) prescription drug 
B) hypodermic needle 
C) hairbrush 
D) beach ball 
A) prescription drug 
B) hypodermic needle 
C) hairbrush 
D) beach ball

Question 5

From the plaintiff's standpoint,a successful products liability suit can arise from all of the following except:

Accepted Answer

A) a poorly designed product injured a consumer 
B) a faulty manufacturing job results in injury 
C) a person uses a product that was accompanied by inadequate instructions, and is injured 
D) improper pricing of the product 
A) a poorly designed product injured a consumer 
B) a faulty manufacturing job results in injury 
C) a person uses a product that was accompanied by inadequate instructions, and is injured 
D) improper pricing of the product

Question 6

Which of the following is not a type of professional liability policy available in todays insurance marketplace?

Accepted Answer

A) physicians', surgeons', and dentists' policy 
B) hospital liability policy 
C) directors' and officers' liability insurance 
D) business auto liability insurance 
A) physicians', surgeons', and dentists' policy 
B) hospital liability policy 
C) directors' and officers' liability insurance 
D) business auto liability insurance

Question 7

No-fault insurance assumes that the defendant is always at fault,and is thus a form of strict liability insurance.

Accepted Answer

A) True 
 B)False

Question 8

The term "professional liability insurance" is also known as "errors and omissions" insurance.

Accepted Answer

A) True 
 B)False

Question 9

The Americans with Disabilities Act (ADA)requires employers to do which of the following?

Accepted Answer

A) Hire a minimum number of disabled persons 
B) Discriminate in favor of disabled persons 
C) Actively seek out disabled persons as potential employees 
D) Make reasonable accommodations for disabled employees or qualified job applicants 
A) Hire a minimum number of disabled persons 
B) Discriminate in favor of disabled persons 
C) Actively seek out disabled persons as potential employees 
D) Make reasonable accommodations for disabled employees or qualified job applicants

Question 10

Keith hosts a New Years Eve party,and Margaret attends the party. She drinks several beers at the party,and Keith provided the beers. She leaves the party in her car,has an accident and is injured. Which of the following is true?

Accepted Answer

A) all judges are required to find that Keith is liable for Margarets injuries 
B) no judge will find that Keith is liable for Margarets injuries, since he was not serving alcohol for a profit 
C) Margaret cannot sue Keith for any injuries sustained, since she voluntarily consumed the alcohol 
D) none of the above 
A) all judges are required to find that Keith is liable for Margarets injuries 
B) no judge will find that Keith is liable for Margarets injuries, since he was not serving alcohol for a profit 
C) Margaret cannot sue Keith for any injuries sustained, since she voluntarily consumed the alcohol 
D) none of the above

Question 11

Vicarious liability is also called:

Accepted Answer

A) indirect liability 
B) directional liability 
C) illegal activities liability 
D) direct liability 
A) indirect liability 
B) directional liability 
C) illegal activities liability 
D) direct liability

Question 12

Which of the following occupations would generally not need professional liability insurance for damage done at work?

Accepted Answer

A) insurance agent 
B) accountant 
C) barbers and hairdressers 
D) professional football players 
A) insurance agent 
B) accountant 
C) barbers and hairdressers 
D) professional football players

Question 13

Indhar is seriously injured by Monica's negligence when she crashes her car into his. Both have automobile liability policies in force. Under the tort liability system:

Accepted Answer

A) Indhar will be compensated by Monica's automobile liability insurer 
B) Indhar will be compensated by his liability insurer, which will also compensate Monica 
C) Indhar and Monica will each collect from the Federal Emergency Management Agency. 
D) none of the above 
A) Indhar will be compensated by Monica's automobile liability insurer 
B) Indhar will be compensated by his liability insurer, which will also compensate Monica 
C) Indhar and Monica will each collect from the Federal Emergency Management Agency. 
D) none of the above

Question 14

The controversy over the wording of the CGL as it applies to pollution exposures arises because:

Accepted Answer

A) any product placed in the environment is considered pollution 
B) the contract only pays for bodily injury and property damage from rapidly occurring events 
C) of the meaning of the exclusion relating to non sudden and non accidental polluting events 
D) of whether intentional injury is covered under the clean up clause 
A) any product placed in the environment is considered pollution 
B) the contract only pays for bodily injury and property damage from rapidly occurring events 
C) of the meaning of the exclusion relating to non sudden and non accidental polluting events 
D) of whether intentional injury is covered under the clean up clause

Question 15

Legal rules dictate how an employer must act from the time a job position is created until the time that position is eliminated.

Accepted Answer

A) True 
 B)False

Question 16

Most of the no-fault plans in effect today are actually "modified" no-fault plans,because after some threshold of damage is done,the injured party can use the tort liability system to collect additional sums.

Accepted Answer

A) True 
 B)False

Question 17

Dram Shop Acts hold a business responsible for providing:

Accepted Answer

A) dangerously-contaminated food 
B) alcohol 
C) drams 
D) automobiles to intoxicated or incompetent drivers 
A) dangerously-contaminated food 
B) alcohol 
C) drams 
D) automobiles to intoxicated or incompetent drivers

Question 18

Explain the need for a claims-made form. Explain how a liability insurance contract written on a claims-made form works.

Accepted Answer

Claims
made insurance contracts are need

Question 19

The Americans with Disabilities Act (ADA)resulted in which of the following?

Accepted Answer

A) Better employment opportunities for disabled Americans 
B) An increase in costs for employers 
C) An increase in litigation 
D) All of the above 
A) Better employment opportunities for disabled Americans 
B) An increase in costs for employers 
C) An increase in litigation 
D) All of the above

Question 20

All the following are true of the Price-Anderson Act except:

Accepted Answer

A) it was passed because of the Three Mile Island accident 
B) it currently limits claims from any one accident to about $7 billion 
C) each operating reactor is assessed $66 million when a loss occurs 
D) the Price Anderson act was reauthorized in 1988 with major changes 
A) it was passed because of the Three Mile Island accident 
B) it currently limits claims from any one accident to about $7 billion 
C) each operating reactor is assessed $66 million when a loss occurs 
D) the Price Anderson act was reauthorized in 1988 with major changes

Exam 19: Commercial Liability Insurance

Libel committed by a business can result in a lawsuit that asks the business to pay:

If the EEOC does not find an employer guilty of discrimination,the employee must accept its decision without further action against the employer.

All the following are possible remedies for the products liability problem except:

Which of the following products would be most likely to create a long-tailed liability exposure?

From the plaintiff's standpoint,a successful products liability suit can arise from all of the following except:

Which of the following is not a type of professional liability policy available in todays insurance marketplace?

No-fault insurance assumes that the defendant is always at fault,and is thus a form of strict liability insurance.

The term "professional liability insurance" is also known as "errors and omissions" insurance.

The Americans with Disabilities Act (ADA)requires employers to do which of the following?

Keith hosts a New Years Eve party,and Margaret attends the party. She drinks several beers at the party,and Keith provided the beers. She leaves the party in her car,has an accident and is injured. Which of the following is true?

Vicarious liability is also called:

Which of the following occupations would generally not need professional liability insurance for damage done at work?

Indhar is seriously injured by Monica's negligence when she crashes her car into his. Both have automobile liability policies in force. Under the tort liability system:

The controversy over the wording of the CGL as it applies to pollution exposures arises because:

Legal rules dictate how an employer must act from the time a job position is created until the time that position is eliminated.

Most of the no-fault plans in effect today are actually "modified" no-fault plans,because after some threshold of damage is done,the injured party can use the tort liability system to collect additional sums.

Dram Shop Acts hold a business responsible for providing:

Explain the need for a claims-made form. Explain how a liability insurance contract written on a claims-made form works.

The Americans with Disabilities Act (ADA)resulted in which of the following?

All the following are true of the Price-Anderson Act except:

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

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