Question 1

Loss through legal liability for harm caused to others is not a serious financial risk.

Accepted Answer

A) True 
 B)False  False

Question 2

The trend toward absolute liability is illustrated by all but one of the following:

Accepted Answer

A)  passage, of workers' compensation laws 
B)  weakening of common-law defenses 
C)  guest-host laws 
D)  last clear chance rule e. the operation of the res ipsa loquitur doctrine. 
A)  passage, of workers' compensation laws 
B)  weakening of common-law defenses 
C)  guest-host laws 
D)  last clear chance rule e. the operation of the res ipsa loquitur doctrine. C

Question 3

If a pedestrian is injured by an object falling from a building, the owner is likely to be held liable under the doctrine of

Accepted Answer

A)  comparative negligence 
B)  family purpose 
C)  respondeat superior 
D)  res ipsa loquitur 
E)  contributory negligence. 
A)  comparative negligence 
B)  family purpose 
C)  respondeat superior 
D)  res ipsa loquitur 
E)  contributory negligence. D

Question 4

Match the descriptions with their terms:
-In a _________________ premiums increase gradually or may even decline.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 5

Owners of ball parks may defend themselves from lawsuits from fans injured by foul balls under the doctrine of

Accepted Answer

A)  assumed risk 
B)  comparative negligence 
C)  contributory negligence. 
A)  assumed risk 
B)  comparative negligence 
C)  contributory negligence.

Question 6

A homeowner has an obligation to protect a licensee from harm.

Accepted Answer

A) True 
 B)False

Question 7

A characteristic of the res ipsa loquitur doctrine is

Accepted Answer

A)  the plaintiff was not in a position to know what happened and the defendant was 
B)  the defendant and plaintiff were both in a position to use the instrument that caused the loss 
C)  the proper use of the instrument may often cause damage. 
A)  the plaintiff was not in a position to know what happened and the defendant was 
B)  the defendant and plaintiff were both in a position to use the instrument that caused the loss 
C)  the proper use of the instrument may often cause damage.

Question 8

Match the descriptions with their terms:
-In a _________________ premiums increase at a very rapid rate.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 9

Insurance is available for intentional torts such as slander.

Accepted Answer

A) True 
 B)False

Question 10

Property insurance will pay for a loss

Accepted Answer

A)  without regard to fault 
B)  if the peril is covered 
C)  if the owner of the property is the insured 
D)  if the loss is less than the policy limit. 
A)  without regard to fault 
B)  if the peril is covered 
C)  if the owner of the property is the insured 
D)  if the loss is less than the policy limit.

Question 11

Match the descriptions with their terms:
-_________________ are individuals who are invited on the premises for their benefit as well as for that of the landlord or tenant.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 12

Match the descriptions with their terms:
-_________________ involves written, printed, or pictorial material that damages a person's reputation by defaming or ridiculing the person.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 13

Match the descriptions with their terms:
-_________________ are assessed when it is deemed that the defendant acted in a grossly negligent manner and deserves to be punished and made an example of.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 14

Match the descriptions with their terms:
-_________________ are designed to compensate the injured party for pain endured due to the negligent behavior of the defendant.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 15

The attractive nuisance doctrine may give the status of an invitee to a trespasser who is a child.

Accepted Answer

A) True 
 B)False

Question 16

An implied warranty with respect to a product is

Accepted Answer

A)  the price is fair 
B)  the goods are reasonably fit for the purpose for which they are intended 
C)  guaranteed results. 
A)  the price is fair 
B)  the goods are reasonably fit for the purpose for which they are intended 
C)  guaranteed results.

Question 17

The homeowners' policy does not insure

Accepted Answer

A)  personal real property 
B)  indirect losses 
C)  personal property 
D)  business real property. 
A)  personal real property 
B)  indirect losses 
C)  personal property 
D)  business real property.

Question 18

Vicarious liability laws place the liability of the driver of an automobile on the owner.

Accepted Answer

A) True 
 B)False

Question 19

Match the descriptions with their terms:
-Persons who have legitimate purpose on someone's land but are not specifically invited are called _________________.

Accepted Answer

A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers 
A)  attractive nuisance doctrine 
B)  collateral source rule 
C)  direct loss 
D)  family-purpose doctrine 
E)  guest-host statutes
F) hard market
G) imputed act
H) Indirect loss
I) Invitees
J) Lack of privity
K) last clear chance
L) Libel
M) licensees
N) negative act
O) negligence
P) Pain and suffering damages
Q) Personal property
R) proximate cause
S) Punitive damages
T) Real property
U) Slander
V) soft market
W) Superfund legislation
X) tort
Y) tort feasor
Z) Trespassers

Question 20

Oxanhorse fails to repair Bickley's car on time which causes Bickley to be late for an appointment. As a result, Bickley loses an important contract. Oxanhorse is probably liable for the loss.

Accepted Answer

A) True 
 B)False

Exam 3: Property and Liability Loss Exposures

Loss through legal liability for harm caused to others is not a serious financial risk.

The trend toward absolute liability is illustrated by all but one of the following:

If a pedestrian is injured by an object falling from a building, the owner is likely to be held liable under the doctrine of

Match the descriptions with their terms: -In a _________________ premiums increase gradually or may even decline.

Owners of ball parks may defend themselves from lawsuits from fans injured by foul balls under the doctrine of

A homeowner has an obligation to protect a licensee from harm.

A characteristic of the res ipsa loquitur doctrine is

Match the descriptions with their terms: -In a _________________ premiums increase at a very rapid rate.

Insurance is available for intentional torts such as slander.

Property insurance will pay for a loss

Match the descriptions with their terms: -_________________ are individuals who are invited on the premises for their benefit as well as for that of the landlord or tenant.

Match the descriptions with their terms: -_________________ involves written, printed, or pictorial material that damages a person's reputation by defaming or ridiculing the person.

Match the descriptions with their terms: -_________________ are assessed when it is deemed that the defendant acted in a grossly negligent manner and deserves to be punished and made an example of.

Match the descriptions with their terms: -_________________ are designed to compensate the injured party for pain endured due to the negligent behavior of the defendant.

The attractive nuisance doctrine may give the status of an invitee to a trespasser who is a child.

An implied warranty with respect to a product is

The homeowners' policy does not insure

Vicarious liability laws place the liability of the driver of an automobile on the owner.

Match the descriptions with their terms: -Persons who have legitimate purpose on someone's land but are not specifically invited are called _________________.

Oxanhorse fails to repair Bickley's car on time which causes Bickley to be late for an appointment. As a result, Bickley loses an important contract. Oxanhorse is probably liable for the loss.

Introduction to Risk

Risk Identification and Evaluation

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

Filters