Quiz - section 5 Flashcards
The Commissioner shall establish a list of all surplus line insurers who have met the recognized requirements for such title and shall issue a master list at least semiannually. This list is known as:
Commissioner`s list of surplus lines
LESLI
OSHA
SEUA
LESLI
All of the following are methods of managing risk EXCEPT:
Rescission
Retention
Transfer
Avoidance
Rescission
Loss of rent, profits, expenses necessary to keep a business running until the damage can be fixed are examples of:
Named perils
Indirect loss
Loss exposure
Direct loss
Indirect loss
All of the following are categorized torts EXCEPT:
Absolute/Strict
Negligence
Adverse selection
Intentional
adverse selection
Punitive damages are:
amounts paid for actual loss or injury sustained.
a form of punishment imposed by the court upon the individual responsible for a loss.
losses of property or injuries resulting in medical bills.
losses that are not easily measured in dollar amounts.
a form of punishment imposed by the court upon the individual responsible for a loss.
Which would not be a tort?
Keeping a pet rattle snake
Any legal wrong
Strict liability
Negligence
Any legal wrong
In computing the loss payment for contributory negligence the claim would:
be reduced by the percentage of fault for which the client is found responsible
pay out the amount of the claim, minus the deductible.
pay nothing if the injured party didn`t meet the standard of self-protection in any form.
pay the full amount of the claim under all circumstances.
pay nothing if the injured party didn`t meet the standard of self-protection in any form.
Insurance that cannot be procured through admitted insurers may, under certain circumstances, be placed with nonadmitted insurers. This is known as:
Tort lines
Non-standard lines
Surplus lines
Special surplus lines
Surplus lines
Which method of managing risk is described as not purchasing insurance at all, or paying part of a loss when it occurs?
Reduction
Transfer
Avoidance
Retention
Retention
Which of the following is NOT a description of what the California Worker`s Compensation Inspection Rating Bureau (WCIRB) does?
Collects and tabulates information and statistics for the purpose of developing pure premium rates to be submitted to the commissioner for issuance or approval.
Develops information about property and liability risk and the property/casualty insurance industrys leading supplier of statistical, actuarial, underwriting, and claims data.
Inspects risks for classification or rate purposes to furnish to the insurer and upon request of the employer.
Provides reliable statistics and rating information regarding workers compensation and employer`s liability insurance.
Develops information about property and liability risk and the property/casualty insurance industry`s leading supplier of statistical, actuarial, underwriting, and claims data.
A special surplus line broker may transact Special Surplus Lines. All of the following are special surplus lines EXCEPT:
Aircraft insurance
Reinsuring the liability of an admitted insurer
Insurance on property or operations of railroads engaged in interstate commerce
Farm or cattle ranch
Farm or cattle ranch
Defamation is an intentional tort that damages one’s reputation that is:
neither false or either written or spoken are correct
both false and either written or spoken are correct
either written or spoken
false
both false and either written or spoken are correct
The Tyler-Star Newspaper wrote an article about Jims Bakery that made Jim look like a racist. This type of injury to Jims character is known as:
Absolute liability
Libel
Misrepresentation
Slander
Libel
Insurance Services Office develops forms and lost cost rating for:
workers’ compensation
surety ship and crops
property and casualty
Both property and casualty and surety ship and crops
property and casualty
Amounts paid for actual loss or injury are known as:
General damages
Specific damages
Compensatory damages
Punitive damages
Compensatory damages
