Chapter 19

Question 1

Describe the conditions of an insurance policy?

Answer 1

1. Identification of the risk covered; 2. the specific amount payable; 3. the specified occurrence.

Question 2

A contract that creates legal obligations on the part of both the insured and the insurer.

Answer 2

Insurance

Question 3

What are the distinct parts of an insurance policies?

Answer 3

Include occurrence policies, which cover all incidents that arise during a policy year, regardless of when they are reported to the insurer; and claims-made policies, which cover only those claims made or reported during the policy year. Tail coverage policies provide for an uninterrupted extension of an insurance policy period. Umbrella policies cover awards over the amount provided in the basic policy coverage.

Question 4

What are the 5 elements of an insurance policy?

Answer 4

1. Insurance agreement; 2. Defense and settlement; 3. Policy period; 4. Amount payable; 5. Conditions of the policy.

Question 5

What are the primary categories of risk?

Answer 5

a. Property loss; b. Personal risk, i. Accident, ii. Illness; c. Legal liability

Question 6

Conditions of an insurance policy.

Answer 6

Notice of occurrence; notice of claim; assistance of the insured; other insurance; assignment; subrogation; cancellation.

Question 7

Under what circumstances should a healthcare professional self-insure?

Answer 7

Extremely high costs of maintaining such insurance, some institutions have sought alternatives to this conventional means of protecting against medical malpractice.

Question 8

Professional liability insurance covers?

Answer 8

negligence; assault and battery that result from failing to obtain consent to a medical or surgical procedure.