chapters 4, 5, and 6 for risk

In most cases, actual cash value (ACV) will lead to a larger loss settlement than replacement cost. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

False

In property insurance, an insurable interest must only exist at the inception of the policy. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

False

Tim has an auto policy that provides for primary coverage of $300,000 for bodily injury liability. He also has a personal umbrella policy that provides excess coverage of $1,000,000. In the case of a $500,000 covered liability claim, how much will the personal umbrella policy pay? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $0 b $200,000 c $300,000 d $500,000

$200,000

Name the requisites of insurable risk from the standpoint of the insured. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Large enough number, accidental loss, determinable and measurable, and noncatastrophic in nature. b Sufficiently severe so as to cause financial hardship and probability of loss not too high so as to drive the premium up beyond the means of the buyer. c None of the above.

Sufficiently severe so as to cause financial hardship and probability of loss not too high so as to drive the premium up beyond the means of the buyer.

According to Dr. Berry's video and the Hoyt and Summer textbook, losses from legal liability have increased dramatically over the last 20 years, especially in the area of product liability and auto liability. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

True

Coinsurance in property insurance serves to encourage the insured to purchase coverage to value. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

True

Many policies exclude losses to aircraft and watercraft because coverage for those perils are usually covered elsewhere in specific policies. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

True

The principle of indemnity in insurance serves to reduce moral hazard. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

True

What are the three classes of persons giving rise to liability to a property owner (mark all that apply)? Multiple answers:Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation...SHOW MORE a Invitee: invited on the premises such as customer of a business b Licensee: on premises for a legal purpose such as a mail carrier c Owner: responsible for the claim d Trespasser: any other person such as a robber

a Invitee: invited on the premises such as customer of a business b Licensee: on premises for a legal purpose such as a mail carrier d Trespasser: any other person such as a robber

What are the social values of insurance? (mark all that apply) Multiple answers:Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation...SHOW MORE a Reduces the need to accumulate funds to meet loss b Increases the pool of investable funds thus reducing the cost of capital c Improves credit d Reduces losses through loss control e Exaggerates losses f Reduces worry

a Reduces the need to accumulate funds to meet loss b Increases the pool of investable funds thus reducing the cost of capital c Improves credit d Reduces losses through loss control f Reduces worry

Who may be liable for the operation of an automobile (mark any that apply)? Multiple answers:Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation...SHOW MORE a The owner b A user c A bystander

a The owner b A user

Select the major reasons for excluding certain perils from insurance contracts. Select all that apply. Multiple answers:Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation...SHOW MORE a They are not insurable b They are covered by other insurance c An additional premium is needed fi coverage is desired. d The probability of loss is low.

a They are not insurable b They are covered by other insurance c An additional premium is needed fi coverage is desired.

All of the following would typically be viewed as having a professional liability exposure EXCEPT: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a carpenters b accountants c physicians d insurance agents e lawyers

carpenters

All of the following are common insurance policy conditions EXCEPT: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a cancellation b notice of loss c earthquake d preservation of property

earthquake

Of the following requisites of an insurable, which one is the most important in explaining why life insurance policies are usually not available for issue above a certain age (such as 95)? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a accidental and unintentional b determinable and measurable c probability of loss not too high

probability of loss not too high

Insurance contract are often considered "contracts of adhesion" which means that unclear language or ambiguities in the contract will be construed or interpreted in favor of Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the insured b the insurer c the drafting party

the insured

The product in insurance is all of the following EXCEPT Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The premium for the promise to pay b The insurance contract c A savings account d An insurance policy

A savings account

An insured has the following four liability insurance policies: $300,000 with insurer A, $300,000 with insurer B, $700,000 with insurer C, and $900,000 with insurer D. Each policy apportions losses using the equal shares method.How much will each policy pay for a $2 million loss? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Each will pay $300,000 b A. $0 B. $300,000 C. $0 D. $700,000 c A. $300,000 B. $0 D. $700,000 D. $0 d A. $300,000 B. $300,000 C. $700,000 D. $700,000

A. $300,000 B. $300,000 C. $700,000 D. $700,000

What types of losses do bodily injury liability include? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Medical expenses b Loss of income c pain and suffering d All of the above

All of the above

The mortgagee clause protects the lender's interest. Which of the following describes a way the mortgagee clause aids the mortgagee? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The mortgagee can sue in its own name b The mortgagee receives ten days notice of cancellation rather than five, as in a fire policy c If there is an increase in hazard unknown the mortgage, the mortgagee's interest is still protected d All of the above describe a way the mortgage clause aids the mortgagee.

All of the above describe a way the mortgage clause aids the mortgagee

The assumption of risk doctrine would mean that Bobbi would not be able to sue for damages under which circumstance? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Bobbi is driving by a baseball field on her way to work and a fly ball hits her windshield and breaks it b Bobbi gets food-poisoning when eating meat that sat out too long at her favorite grill where she eats every Friday night c Bobbi rides a rollercoaster at her favorite amusement park; she drops her purse at the top of the first climb are ruined d Bobbi gets very ill when a surgeon fails to remove a sponge from her body during an appenectomy

Bobbi rides a rollercoaster at her favorite amusement park; she drops her purse at the top of the first climb are ruined

In a named-perils insuring agreement, the policy states that it is the insurer's intention to cover risks of accidental loss to the described property except those perils specifically excluded. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a True b False

False

What are the elements of a negligent act? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Duty, breach, damages, proximate cause b Direct loss, libel, pain and suffering c Intention, vicarious, imputed, reasonable

Duty, breach, damages, proximate cause

What types of tort reform is the insurance industry supporting? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Imposing restriction on rights to sue, limiting punitive damages, and pain and suffering b Imposing restriction on rights to defend, increasing punitive damages, increasing standard of care required for product liability

Imposing restriction on rights to sue, limiting punitive damages, and pain and suffering

Which of the following is true about insurance? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Having insurance makes whether or not an individual will have an accident more predictable b Having insurance lowers the total amount of loss (even before the financial risk transfer) for a pool of insureds c Insurance only works if the pool is larger enough to make losses more predictable for the pool d Insurance is the exchange of a large certain sum for a small uncertain sum

Insurance only works if the pool is larger enough to make losses more predictable for the pool

What is res ipsa loquitur? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Legal doctrine that allows the plaintiff to collect even though the plaintiff cannot or does not prove the defendant negligent b Legal doctrine that allows the defense to collect when the plaintiff is defeated in court

Legal doctrine that allows the plaintiff to collect even though the plaintiff cannot or does not prove the defendant negligent

Dee has a house valued at $150,000. Dee takes out homeowner's insurance from two companies, each policy in the amount of $150,000. If the house is totally destroyed, can D collect in full from both companies? Why or why not? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Yes, Dee can collect the full $150,000 from each company. b No, because collecting in full from both insurers would violate the principle of indemnity.

No, because collecting in full from both insurers would violate the principle of indemnity.

According to Dr. Berry, almost every each year, many legal liability cases are related to Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Medical marijuana b Explosive products c Vacation time-shares d Obstetrics

Obstetrics

An insurable interest likely exists in all of the following cases EXCEPT: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a individual takes out a life insurance policy on his or her own life b a bank requires a borrower with a mortgage on his or her home to take out a homeowners' insurance policy c a spouse takes out a life insurance policy on the life of the other spouse d a friendly neighbor takes out a life insurance policy on his neighbor's life

a friendly neighbor takes out a life insurance policy on his neighbor's life

Of the three categories of individuals who might enter premises, to which one does the owner or tenant owe the highest degree of care? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a licensees b trespassers c invitees

invitees

Which of the following is a reason for subrogation in insurance policies? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a it allows the insured to collect twice for a loss caused by someone else b it reduces the premium that would otherwise have to be charged in the absence of a subrogation provision c in liability insurance, it doesn't require the person responsible for a loss to pay the cost of a loss

it reduces the premium that would otherwise have to be charged in the absence of a subrogation provision