Introduction to Property-Casualty Insurance 9

Question 1

A written law passed by a legislative body, at either the federal or state level.

Answer 1

Statue

Question 2

The branch of civil law that deals with civil wrongs other than breaches of contract.

Answer 2

Tort Law

Question 3

The failure to exercise the degree of care that a reasonable person in a similar situation would exercise to avoid harming others.

Answer 3

Negligence

Question 4

A contractual provision that obligates one of the parties to assume the legal liability of another party.

Answer 4

Hold-harmless agreement (or indemnity agreement)

Question 5

Money claimed by, or a monetary award to, a party who has suffered bodily injury or property damage for which another party is legally responsible.

Answer 5

Damages

Question 6

The exposure to liability for bodily injury or property damage due to the ownership, occupancy, or use of the premises.

Answer 6

Premises Liability Exposure

Question 7

The exposure to liability for bodily injury or property damage resulting from the insured’s ongoing business activities, as opposed to the insured’s completed operations.

Answer 7

Operations Liability Exposure

Question 8

A manufacturer’s or seller’s exposure to liability for harm suffered by a buyer, user, or bystander as a result of a defective product.

Answer 8

Products Liability Exposure

Question 9

The exposure to liability for bodily injury or property damage arising out of the insured’s completed work.

Answer 9

Completed Operations Liability Exposure

Question 10

A coverage form commonly used for insuring an organization’s premises and operations liability loss exposures and products and completed operations liability loss exposures.

Answer 10

Commercial General Liability Coverage Form

Question 11

The most the insurer will pay under Coverage B for the sum of all personal and advertising injury to one person or organization.

Answer 11

Personal and Advertising Injury Limit.

Question 12

A defamatory statement expressed in writing.

Answer 12

Libel

Question 13

A defamatory statement expressed in speech.

Answer 13

Slander

Question 14

The seizure of forcible restraint of a person without legal authority.

Answer 14

False Arrest

Question 15

A coverage form, filed by ISO, that covers liability arising out of the ownership, maintenance, or use of autos and physical damage to autos owned, leased or hired by the named insured.

Answer 15

Business Auto Coverage Form

Question 16

Insurance that covers (1) benefits to an employer is obligated to pay under workers compensation laws and (2) employee injury claims made against the employer that are not covered by workers compensation laws.

Answer 16

Workers Compensation and Employees Liability Insurance

Question 17

A statue that obligates employers, regardless of fault, to pay specified medical disability, rehabilitation, and death benefits for their employees’ job-related injuries and diseases.

Answer 17

Workers Compensation Statue

Question 18

The policy used in most states to provide workers compensation and employers liability insurance.

Answer 18

Workers Compensation and Employers Liability Insurance Policy (WC&EL policy)

Question 19

Coverage provided by many umbrella liability policies for (1) claims not covered at all by the underlying policies and (2) claims that are not covered by an underlying policy only because the underlying policy’s aggregate limits have been depleted.

Answer 19

Drop-Down Coverage