Exam 2 Flashcards
The “primary coverage” in an insurance package.
General Liability Insurance
Insurance which covers vehicles (cars, trucks, vans) used for business.
Commercial Auto Policy
A state-mandated coverage for workers injured on the job.
Worker’s Compensation
The “additional coverage” in an insurance package, which addresses all areas not covered by primary coverage.
Umbrella/Excess Coverage
Failure to provide _____ ______ may result in a breach of contract.
Contractor’s Insurance
The right time to report an accident is ___________.
As soon as possible.
The insurance company who writes the policy.
The Carrier
The injured party in an accident, who may or may not be insured.
The Claimant
The beginning act of filing a claim on an individual or corporation.
To put on notice.
I.e. conveying to someone that you are filing a claim on them. “Hey, I’m filing a claim.”
An individual or corporation who carries insurance.
The Insured
A financial limit on a claim.
Policy Limits
(Aggregate - $2,000,000
Single Incident - $1,000,000)
A payment to insurance before the insurance goes into effect.
A deductible
True or False:
Worker’s Comp is mandated by law in every state in the U.S.
No.
Texas does not require Worker’s Comp
The Six Components of Insurance
- Declarations
- Insuring Agreement
- Exclusions
- Definitions
- Conditions
- Endorsements
This component of insurance outlines obligations and summarizes promises.
The Insuring Agreement
This component of insurance outlines exceptions to the insurance policy
The Exclusions (ex. perils, losses themselves)
The substitution of insurance policy with the contractor.
Subrogation. (I.e. the insurance company can sue the subcontractor, if need be)
True or False:
Subrogation can be waived.
True
A tornado blows the roof off of a house. The costs of repairing the roof would be considered:
a) Consequential Damages
b) Direct Damages
Direct Damages
A tornado blows the roof off of a house. The damages from the tornado prevent the local real estate agent from selling the house. The real estate agent’s unlucky experience could be classified as:
a) Consequential Damages
b) Direct Damages
Consequential Damages
Liquidated damages can NOT be charged after _______ _______.
Substantial Completion
A stipulation within a contract which allows the avoidance of coverage for damages incurred as a consequence of the original damages.
A Waiver of Consequential Damages
An unwritten or unstated expectation of payment on behalf of the owner, which provides a defense against a lack of payment to the contractor.
Promissory Estoppel
Law theory that goes into effect when the owner is aware of work and payment, yet denies the contractor said payment.
Quantum Merit
A Mitigation of Damages method which evaluates a damages by comparison to the total cost of the project. The owner is the sole bearer of responsibility in this scenario.
Total Cost Method
A Mitigation of Damages method which takes the errors of the contractor into account.
Modified Total Cost
Wrongful termination, owner caused delays, and defective drawings/specs are all examples of:
Contractor Changes
3 ways to prevent a contractor from recovery
- A waiver of consequential damages
- poor record keeping
- Speculative evidence regarding costs
_____ ______ prevents filing suit against the state of Texas.
Sovereign Immunity
This act stipulates that you cannot place a lien on public real property. You are able to provide a claim against a payment bond placed on the project.
The McGregor Act
Not Connor McGregor. That would, however, be pretty bad ass
