Chapter 1 Flashcards
Sarah is reviewing her motor insurance policy. She notices that damage caused by an event occurring on a large scale, like a war, isn’t covered. What type of risk is this?
A) Minor car accident
B) Flood damage
C) War
D) Storm damage
C - War
Tom lives in an area where heavy storms are frequent. His insurance policy has a section for accidental damage protection that includes coverage for storms. What type of event is likely covered by this section?
A) Nuclear explosion
B) War
C) Storm
D) Terrorism
C) STORM
A homeowner’s property is severely damaged due to a nuclear contamination event. He tries to file an insurance claim but is told the damage is not covered. What category of risk is nuclear contamination considered?
A) Flood
B) Nuclear contamination
C) Minor theft
D) Road traffic accident
B) Nuclear contamination
Jane’s car was damaged in a small accident, causing a minor repair cost. This is an example of a risk that is confined to a specific cause and effect. What type of risk does this represent?
A) Risks that have a large-scale impact
B) Risks that can cause catastrophic events
C) Risks with a confined cause and effect, resulting in minor to major losses
D) Risks that are not covered by any insurance policies
C) Risks with a confined cause and effect, resulting in minor to major losses
Mark’s car was damaged by a terrorist attack. When he tries to claim the insurance, he is informed that this type of damage is not covered by his policy. What type of damage is most likely not covered by comprehensive motor insurance?
A) Accidental damage
B) Storm damage
C) War damage
D) Theft
C) War Damage
Emma was involved in a car accident that caused injury to herself and her passengers. What peril is this an example of?
A) Damage to other property
B) Death or bodily injury to occupants of the vehicle
C) Theft or attempted theft
D) Damage due to storm or flood
A: B) Death or bodily injury to occupants of the vehicle
A cyclist is injured when hit by a car. What type of peril is this?
A) Damage to the vehicle
B) Bodily injury to the driver
C) Death or bodily injury to other road users
D) Theft of vehicle parts
C) Death or bodily injury to other road users
A car owner’s vehicle was damaged in a storm and the insurance policy covered the repairs. What type of peril is this?
A) Theft and deception
B) Damage to the vehicle in use due to accident, storm, or flood
C) Damage to property of others
D) Bodily injury to passengers
B) Damage to the vehicle in use due to accident, storm, or flood
Mark is careless when parking his car, and as a result, another vehicle was damaged. What type of hazard does this represent?
A) Moral hazard
B) Physical hazard
C) Legal hazard
D) Weather hazard
A) Moral hazard
A vehicle is stolen, and the owner claims the loss with their insurance. What peril does this scenario describe?
A) Fire damage
B) Theft and attempted theft
C) Collision damage
D) Bodily injury to others
B) Theft and attempted theft
A driver with a high-risk history of traffic violations causes an accident. What type of hazard does this situation illustrate?
A) Physical hazard
B) Moral hazard
C) Environmental hazard
D) Property hazard
B) Moral hazard
John was driving carelessly and caused an accident, injuring another driver. What tort is this an example of?
A) Nuisance
B) Trespass
C) Conversion
D) Negligence
D) Negligence
A car owner’s property is wrongfully taken by someone who claims to be the rightful owner. This action is an example of which tort?
A) Nuisance
B) Trespass
C) Conversion
D) Negligence
C) Conversion
A neighbor’s loud music causes disturbance and loss of enjoyment of your property. Which tort is likely involved here?
A) Trespass
B) Negligence
C) Conversion
D) Nuisance
D
Maria enters another person’s driveway without permission, causing damage to the vehicle. What tort is this an example of?
A) Trespass
B) Nuisance
C) Conversion
D) Negligence
A
A driver crashes into a pedestrian while texting and driving. This action most likely involves which tort?
A) Conversion
B) Nuisance
C) Negligence
D) Trespass
C
Tom was driving too fast and failed to brake in time, causing an accident with another car. What must be proven for Tom to be liable for the damages?
A) He owed a duty of care to the other driver
B) The accident must have been caused by external factors like the weather
C) The driver of the other car was speeding
D) The other driver caused the collision
A) He owed a duty of care to the other driver
Emily was a passenger in a car that caused damage by opening the door into a passing cyclist. What type of liability might Emily incur in this case?
A) None, as she was not driving
B) Liability for negligence as a passenger
C) Liability for causing damage to property only
D) Liability for driving recklessly
B) Liability for negligence as a passenger
John was a primary victim in a motor accident when he feared for his own safety. He suffered psychiatric illness due to the shock. What category does John fall under in terms of a nervous shock claim?
A) Secondary victim
B) Primary victim
C) Not eligible for compensation
D) Only eligible if the accident occurred near his home
B) Primary victim
Sarah witnessed a car accident in which her friend was injured. She was 100 yards away from the accident scene and experienced nervous shock. Based on the case law, would Sarah be eligible for damages?
A) Yes, as she is a secondary victim
B) No, as she was too far from the scene
C) Yes, but only if her friend was severely injured
D) No, because she was a bystander with no emotional connection to the accident
B) No, as she was too far from the scene
A driver (Vehicle A) causes an accident because they were distracted while texting. Vehicle B is damaged, and the driver of Vehicle A is found negligent. What is the key element that must be proven in this case for the claim to succeed?
A) The driver of Vehicle A was speeding
B) There was no duty of care owed to the occupants of Vehicle B
C) Damage to Vehicle B and its occupants was foreseeable
D) Vehicle B caused the accident
C) Damage to Vehicle B and its occupants was foreseeable
In general, who has the onus of proof in negligence cases?
A) Defendant
B) Claimant
C) Judge
D) Witness
B) Claimant
Under which legal principle does the onus of proof shift to the defendant when negligence is obvious?
A) Rylands v. Fletcher
B) Musgrove v. Pandelis
C) Res ipsa loquitur
D) Contra proferentem
C) Res ipsa loquitur
Sarah, a delivery driver for FreshFoods Ltd, is running late for a delivery. While driving her company van, she speeds through a red light and crashes into another car, injuring the driver.
Who is most likely to be held vicariously liable?
A) Sarah, as she was driving the van
B) FreshFoods Ltd, since Sarah was working at the time
C) The injured driver, for being in the wrong place
D) The van manufacturer, for making the vehicle
B) FreshFoods Ltd, since Sarah was working at the time