Midterm 1 Corrections Flashcards
Dr. Jones is an orthopedic surgeon. One patient required surgery on his right knee because of cartilage damage. When the patient awoke, he was surprised to see bandages on both knees. He was told that Dr. Jones made an incision on the wrong knee, realized his mistake, and then proceeded with surgery on the correct knee. In this case, Dr. Jones is presumed to be negligent under which legal doctrine?
A. Joint and several liability
B. Res ipsa loquitur
C. Contributory negligence
D. Respondeat superior
B
All of the following may be valid defesnses against a claim of negligence except…
A. Res ispa loquitur
B. Assumption of risk
C. Last clear chance rule
D. Comparative negligence
A
Kate opened a delivery business and hired a delivery driver. When her driver ran a stop sign and injured another motorist, the injured motorist sued Kate as the emploter of the negligent driver. Transferring the liability of one person to another person is called…
A. Contributory negligence
B. Privity of contract
C. Imputed negligence
D. Comparative negligence
C
Which of the following is a covered person under the medical payments coverage of the PAP?
A. A pedestrian struck by the named insurer’s auto
B. A family member of the named insured if struck by an auto while crossing the street
C. The named insured while she is operating her car as a taxi
D. A carjacker who is involved in an accident after stealing the named insured’s car
B
Which of the following statements is (are) true with respect to the collision damage waiver on rented cars?
I. It’s inexpensive and it is provided at no charge by most rental car companies
II. It waives the renter’s liability for bodily damage liability arising out of use of the rented auto
Neither I nor II
Jenny purchased a PAP that included property damage liability, collision coverage, medical payments coverage, and other-than-collision coverage. Jenny had too much alcohol to drink at aa graduation party, While driving home from the party, Jenny ran off the road and hit a tree. Police responded to the accident, and Jenny was arrested for driving under the influence of alcohol. Which of the following statements is true regarding the damage to Jenny’s car?
A. Damage to the car is covered under Jenny’s property damage liability coverage
B. Damage to the car is covered under Jenny’s collision coverage
C. Damage to the car is covered under Jenny’s other-than-collision loss coverage
D. There is no coverage as Jenny was intoxicated at the time of the incident
B
Janet was unable to obtain auto insurance in the voluntary insurance market. She was contacted by the state insurance department and notified that XYZ Insurance would be her insurer. The mechanism used in Janet’s state to provide auto insurance to high-risk drivers is a(n)
A. Joint underwriting association
B. Automobile insurance plan
C. Specialty automobile insurer
D. Reinsurance facility
B
Which of the following statements about the factors affecting automobile insurance rates is true?
A. The cost of collision coverage increases as a car gets older
B. Because of high speeds in rural areas, rural drivers tend to pay more for auto insurance than city drivers pay for auto insurance
C. Young unmarried male drivers tend to have fewer accidents than young married male drivers in the same age category
D. People who drive a car to and from work tend to be charged higher rates than those who use a car for pleasure purposes
D
No-fault benefits are provided by adding an endorsement to the auto insurance policy. What is this endorsement typically called?
Personal injury protection coverage
Harris Petroleum, a fuel storage and delivery business, occasionally has difficulty in obtaining affordable pollution liability insurance. Jane Elmore, Risk Manager of Harris Petroleum, decided to form an insurance subsidiary for the purpose of writing pollution liability insurance for Harris Petroleum, as well as other insurance coverages. The insurance subsidiary will be based in Bermuda for regulatory reasons. What is such a subsidiary called?
A captive insurance company
