Unit 5 Exam Questions

Question 1

Heather the insured, was texting and driving and caused an accident that injured a passenger in another vehicle. The passenger in the other vehicle can’t be held liable for any damages? This is an example of the ___________ defense of negligence

Answer 1

Contributory Negligence

Question 2

2. Jordan delivers lunches for the local deli, using his employer’s vehicle. He is on his cell phone and swerves into oncoming traffic which causes an accident, injurying the driver and passengers of another vehicle. Jordan is directly liable for the accident. What type of liability might his employer incur?

Answer 2

Vicarious Liability

Question 3

In a liability Loss, who is the first party?

Answer 3

The Insured

Question 4

What are the defenses against negligence?

Answer 4

Comparative Negligence, intervening cause, statute of limitations

Question 5

All of the following are defenses against negligence EXCEPT;
Absolute Liability,
Comparative negligence,
Intervening cause,
Statute of limitations

Answer 5

Absolute Liability

Question 6

Which of the following are false?
First aid to others is covered by supplementary payments up to a year after the accident,
Expert witness fees are covered by supplementary payments,
Premiums for bail bonds are covered by supplementary payments,
Loss of earnings for the insured is covered by supplementary payments

Answer 6

First aid to others is covered by supplementary payments up to a year after the accident

Question 7

Another term for absolute liability is____________

Answer 7

Strict Liability

Question 8

Ricardo, the insured, is in a hurry to get to work. He fails to stop at a stop sign, speeds through an intersection, and strikes another vehicle injuring the passenger. The injured passenger sues Ricardo for the injuries she sustained. In this example who is the third party?

Answer 8

The passenger

Question 9

A liability policy has limits of $500,000 per occurrence & a $2 million aggregate. The policy period is from 01/01/2020-12/31/2020. If the company files a $450,000 claim in march, 2 $500,000 claims in august and a $100,000 claim on 12/23/2020 what will the aggregate amount be after the policy is renewed

Answer 9

2 million

Question 10

All of the following are duties of the insured after a liability loss except;
Notify the carrier in writing of all losses
Pay the claim and seek reimbursement from the carrier
Forward all notices to the carrier
Testify on behalf of the case if required

Answer 10

Pay the claim and seek reimbursement from the insurer

Question 11

All of the following statements are true about negligence except
Negligence is a failure to exercise the care that a reasonable person
Negligence is a failure to do or not do something that ordinarily should or shouldn’t be done
Negligence is a civil wrong that unfairly causes someone to suffer a loss
In order for the insured to be held liable for an unintentional tort the insured must have been negligent

Answer 11

Negligence is a civil wrong that unfairly causes someone to suffer a loss

Question 12

12. Anita has a split liability policy that has limits of 100/200/50. Anita caused an accident that caused $75,000 of property damage. What is the maximum that her liability policy will pay for the property damage?

Answer 12

$50,000

Question 13

Jimmy was driving over the speed limit and almost caused a major accident. According to the definition of establishing negligence, Jimmy would be _____________.

Answer 13

Not legally liable

Question 14

14. Which of the following liability limits isn’t applied on a per-occurrence basis?
    - Split limit
    - Aggregate limit
    - Combined single limit
    - Per-person limit

Answer 14

Aggregate Limit

Question 15

In general, Which of the following is included in a liability policy?
Damage to property in the insured’s care,
Bodily injury to another person caused by the insured,
Damage to property owned by the insured,
Bodily injury to the insured

Answer 15

Bodily injury to another person caused by the insured

Question 16

Joyce was driving too fast on a busy highway during a snow storm. She caused a collision and totaled Ray’s car. He suffered from a broken leg, arm, and lost wages after having to miss work for 6 weeks. Rays specific and provable expenses are called__________.

Answer 16

Special Damages