Multiple choice Questions 1

Question 1

There are 3 elements that must be present in every tort action. which of the following does not have to be present in a tort?

A. client owed a duty
B. Duty was breached as a result of negligence
C. Negligent actions are the proximate cause of the damages
D. Damages were unforeseeable

Answer 1

D. damages were unforeseeable

Question 2

Under a personal liability policy, which of the following are automatically insured?

A. the 23 year old son and 21 year daughter living with the ins’d
B. The insured’s 20 year old son, married and living ina an apartment that the insured owns but is separate from the principal residence
C. The insured’s parents living next door
D. A common law partner that moved in with the insured 12 month ago

Answer 2

A. the 23 year old son and 21 year daughter living with the ins’d

Question 3

Common Law is based on

A. Government statutes passed by provincial legislatures that impose civil liability
B. The premise that current court decisions should follow previous decisions whenever the circumstances are similar.
C. The premise that current court decisions should not follow previous decisions whenever the circumstances are similar
D. The premise that current court decisions supersede those of statute law

Answer 3

B. The premise that current court decisions should follow previous decisions whenever the circumstances are similar.

Question 4

Negligence is best defined as

A. Failing to do what a reasonable and prudent person would or would not do in a given situation
B. Acting prudently, having regard to the circumstances
C. Willfully disobeying the law
D. Aiding and abetting another person to commit a fraud

Answer 4

A. Failing to do what a reasonable and prudent person would or would not do in a given situation

Question 5

The insured, while playing catch with his son in the yard, over throws the ball, breaking the neighbor’s front window. Damage to the window is paid for under what section of the insured’s personal liability policy?

A. Voluntary medical payments
B. Voluntary property damage
C No coverage provided unless the insured is found legally liable
D. Personal liability

Answer 5

B. Voluntary property damage

Question 6

Under coverage F, Voluntary Medical Payments, the insurer agrees to pay all reasonable medical expenses incurred within:

B. Two years from the date of the injury
C. Six months form the date that the treatment is sought
D. Two years from the date that the injury is reported

Answer 6

A. one year from the date the injury occurs

Question 7

Civil Law addresses two main areas of Law, namely

A. Contract and Tort Law
B. Contract and Criminal Law
C. Criminal and Tort Law
D. Criminal and Common Law

Answer 7

A. Contract and Tort Law

Question 8

Personal liability coverage applies in which of the following locations

A. Family burial plots
B. Vacant lots
C. Commercial premises
D. A and B

Answer 8

D. A and B

Question 9

Which of the following would not be classed as an automobile and therefore covered under the personal liability policy?

A. A ride-on lawn mower
B. A moped
C. A skidoo
D. A golf cart while being driven to a nearby golf course

Answer 9

A. A ride-on lawn mower

Question 10

Under Coverage E Personal Liability, Tenants Legal is covered if a loss is caused by:

A. Fire or explosion
B. Smoke (excluding smoke from a fire place)
C. Water damage
D. All of the above

Answer 10

D. All of the above

Question 11

When two or more persons commit a tort together they become Joint Tortfeasors. In such circumstances:

A. Each will be assessed a portion of the liability for damages and each insurer is required to respond only after judgment has been rendered
B. Each is assessed an portion of the liability for damages but the insurer of the party with the highest liability limits will provide the defense
C. The party form whose property the damages originated is automatically deemed to be liable for the entire amount of the damages
D. Each tortfeasor may be held liable for the entire amount of the damages

Answer 11

D. Each tortfeasor may be held liable for the entire amount of the damages

Question 12

Then insured hires an independent contractor to perform renovations on her dwelling. The insured will not be deemed liable for the acts of an independent contractor in al of the following circumstances, except one. Pick the exception

A. Where the insured hires and fires the person doing the work
B. Where the insured provides blue prints and leaves the contractor to his own resources
C. Where the insured supplies materials for the contractor to use in the project
D. Where the insured provides onsite direction and supervision of the work

Answer 12

D. Where the insured provides onsite direction and supervision of the work

Question 13

The third party coverage provided by the insurer in a liability policy includes:

A. Bodily injury
B. Sickness, disease and death
C. Property damage
D. All of the above

Answer 13

D. All of the above

Question 14

An example of a Bailee would be a person who:

A. Stores furs for the summer months
B. Repairs customers’ televisions at their shop
C. Repairs or services automobiles
D. All of the above

Answer 14

D. All of the above

Question 15

The property damage converge the insurer provides in a liability policy includes;

A. only loss to tangible property
B. only resulting loss of the use of tangible property
C. both loss to and loss of use of tangible property
D. both loss to intangible property and resulting loss of use of intangible property

Answer 15

C. both loss to and loss of use of tangible property

Question 16

The insured and wife own a summer home, winter home and a small cottage at a lake. the homeowners form will provide liability coverage for :

A. All three locations even if they are not described on the coverage summery page
B. All three only if they are described on the coverage summary page
C. only the summer home
D. only the summer and winter homes

Answer 16

B. All three only if they are described on the coverage summary page

Question 17

Personal liability coverage extends to protect the insured:

A. Only while in Canada
B. Only while in Canada and US
C. Anywhere in the world
D. Only while on the premises insured

Answer 17

C. Anywhere in the world

Question 18

The insurer’s liability under the policy is for the payment of :

A. Compensatory damages
B. Exemplary damages
C. Nominal damages
D. Punitive damages

Answer 18

A. Compensatory damages

Question 19

Under Coverage G, Voluntary Payment for Damage to Property, damage caused intentionally by children is covered as long as they are under the age of:

A. 14
B. 6
C. 12
D. 18

Answer 19

C. 12

Question 20

Strict liability would be imposed on a person(s) who:

A. stores large amounts of gasoline in tanks on their premises located in the middle of a residential neighborhood
B. Uses explosive chemicals in manufacturing demolition supplies
C. Allowed an intentionally started fire to spread.
D. All of the above

Answer 20

D. All of the above

Question 21

Which of the following losses would be covered by the personal liability coverage?

A. The insured damages a chainsaw borrowed from the neighbor
B. the insured damages a television they are storing in their basement for a friend
C. The insured accidentally sets fire to a cabin they are renting
D. The insured accidentally damages a boat borrowed from the neighbor to use in a local regatta

Answer 21

C. The insured accidentally sets fire to a cabin they are renting

Question 22

supplementary payments are:

A. Included in the third party liability limit
B. set at a specified maximum amount
C. Paid back to the insurer by the insured
D. Paid over and above the third party liability limit

Answer 22

D. Paid over and above the third party liability limit

Question 23

Under the personal liability coverage, the insurer provides coverage for boats that are owned by the insured but cannot exceed certain perimeters. Which of the following would be covered?

A. Boats which have either an inboard motor of less than 60 hp, outboard motor of less then 50 hp and non-motorized boats of less than feet long

B. boats which have either an inboard motor of less than 16 hp, outboard motor of less than 50 hp and non-motorized boats of less then 26ft

C. boats which have either an inboard motor of less than 50hp, outboard motor of less than 16 hp and non-motorized boats of less than 26ft

D. there are no restrictions on the size of motors or length of non-motorized units as long as they are owned by the insured

Answer 23

C. boats which have either an inboard motor of less than 50hp, outboard motor of less than 16 hp and non-motorized boats of less than 26ft

Question 24

Liability coverage is automatically extended to vacant land the insured owns unless:

A. The insured is building a new home on it
B. The insured is buying it as an investment
C. The insured is using it for farm pasture
D. the insured is buying it as a tax shelter

Answer 24

C. The insured is using it for farm pasture

Question 25

Liability policies will pay for injury or damages resulting from a person committing:

A. An intentional tort
B. An illegal act
C. An unintentional tort
D. Both A and C

Answer 25

C. An unintentional tort

Question 26

If an individual or business needs higher liability limits than those provided under their automobile or property insurance policies, they can purchase;

A. A supplementary liability policy
B. An overlying limit policy
C. An umbrella liability policy
D. A commercial general liability policy

Answer 26

C. An umbrella liability policy

Question 27

When an umbrella liability policy pays for a claim normally excluded under the primary policy, the insured pays a portion of the loss called:

A. The deductible
B. The self-insured retention
C. The self-insured retainer
D. Co-insurance penalty

Answer 27

B. The self-insured retention

Question 28

Under the person liability coverage, which of the following losses would be covered?

A. The insured, while driving a neighbor’s boat, runs into a dock and injures a number of fishermen

B. the insured, while driving a neighbor’s boat s a ferry service, runs into a dock and injures a number of fishermen

C. The insured, while operating a neighbor’s boat as a fishing charter, runs into a dock and injures a number of fishermen

D. the insured takes the neighbors boat without permission, runs into a dock and injures a number of fishermen.

Answer 28

A. The insured, while driving a neighbor’s boat, runs into a dock and injures a number of fishermen

Question 29

In which of the following circumstances would coverage be provided for the insured under a personal liability policy?

A. Insured’s 18 yr old son vandalized the insured’s home

B. Insured accidentally runs into his own garage door

C. Insured’s 5 yr old son deliberately threw a rock at the windshield of the milkman’s truck smashing the windshield.

D. Insured, while repairing a table for a friend, damages the wood top so severely that the entire table is ruined

Answer 29

C. Insured’s 5 yr old son deliberately threw a rock at the windshield of the milkman’s truck smashing the windshield.

Question 30

A personal liability policy protects against claims for bodily injury and property damage arising out of:

A. Personal acts of the insured, carelessness of the insured’s children an ownership of certain boats.

B. Personal acts of the insured, ownership of certain boats and ownership of vehicles

C. Personal acts of the insured, carelessness of insured’s children, and default in payment of debts

D. Personal act of the insured, poor maintenance of insured dwelling and damage caused by a motorized vehicle

Answer 30

A. Personal acts of the insured, carelessness of the insured’s children an ownership of certain boats.

Question 31

A third party is defined as:

A. One who is not a party to the contract and has no rights to claim under such contract

B. One who is a party to the contract and has no right to collect under such contract.

C. One who is a party to the contract and has a right to collect for bodily injury and property damage under such contract.

D. One who is not a party to the contract and has a right to collect for bodily injury and property damage under such contract

Answer 31

D. One who is not a party to the contract and has a right to collect for bodily injury and property damage under such contract

Question 32

Under the voluntary medical payments and voluntary property damage coverage:

A. There is no requirement to prove the negligence of the insured

B. The legal liability of the insured must be proven

C. Payments can be made up to tow years form the date of the occurrence

D. Payment is made even if the injured party is covered by Alberta Health Care or has no insurance coverage for their property

Answer 32

A. There is no requirement to prove the negligence of the insured

Question 33

A tort is

A. A private or civil wrong or injury, including a breach of contract, for which the court will provide a remedy in the form of an action for damages.

B. A private or civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages

C. When one party acts alone in causing injury or damage

D. When two or more parties act together in causing injury or damage

Answer 33

B. A private or civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages