FL Outline Casualty and Liability Quiz

Stellar Restaurant has a business auto policy (BAP) with a $500,000 limit, and a commercial umbrella policy with a $1 million limit and a $10,000 self-insured retention. While delivering food with the company van, Stellar's driver collides with a commuter bus. Injured bus passengers' claims and damage to the bus result in a $750,000 judgment against Stellar. How much will be paid by the insurer that issued the commercial umbrella policy? $740,000 $500,000 $240,000 $0

$240,000 The BAP insurer will pay the $500,000 limit of the business auto policy, and the umbrella insurer will pay the remaining $240,000 balance of the judgment (i.e., $250,000 minus $10,000 retention).

As long as their termination is not due to a dishonest act, an individual is considered an "employee" under the employee theft insuring agreement for: 30 days following termination 10 days following termination 90 days following termination 60 days following termination

30 days following termination Individuals are considered employees for 30 days after their service terminates. The 30-day extension does not apply if the termination was due to dishonest acts.

Chris did not pay the premium to renew his personal auto insurance policy at the end of its term. What will happen to the policy on its expiration date? It will be rescinded. It will automatically renew. It will be subject to assignment. It will automatically terminate.

Chris did not pay the premium to renew his personal auto insurance policy at the end of its term. What will happen to the policy on its expiration date? It will be rescinded. It will automatically renew. It will be subject to assignment. It will automatically terminate. Automatic termination occurs at the end of the policy period when the policyholder does not renew a policy and fails to pay the renewal premium when it is due.

Evidence indicates that Zeta Construction's negligence caused a stage collapse that resulted in the death of Bonita, a famous performer. Zeta's CGL policy with Alpha Insurance Company has a $300,000 limit that applies to the multimillion dollar claim of Bonita's estate. What must Alpha do under these circumstances? Seek a declaratory judgment to determine whether it must defend Zeta. Defend Zeta until Alpha has paid $300,000 in judgments or settlements. Pay $300,000 to Bonita's estate to immediately settle the claim. Compel Zeta and Bonita's estate to resolve the claim through arbitration.

Defend Zeta until Alpha has paid $300,000 in judgments or settlements. The insuring agreement of the CGL states that the insurer's right and duty to defend the named insured ends when the policy limits have been exhausted through payment of a judgment or settlement.

Riley's coupe is insured with a personal auto policy that includes liability, uninsured motorists, and other-than-collision coverages. He buys a new sedan and wants collision coverage on it. Which statement is true about this coverage? The PAP does not cover the automatic coverage for the Honda. The PAP automatically covers the sedan if he reports it to the insurer after owning it for two or three weeks. He must notify the insurer about the newly acquired sedan within four days. The sedan automatically has collision coverage for the rest of the policy period.

He must notify the insurer about the newly acquired sedan within four days. Because Riley's coupe does not have collision coverage, he must report the newly acquired sedan to his insurer within four days of its acquisition to get collision coverage for it.

Sylvia is at fault for an auto accident with Lucien in which Sylvia is injured. She has no health insurance, and Lucien has no auto insurance. What is correct about the uninsured motorists coverage of Sylvia's personal auto policy (PAP)? It will pay Lucien's medical bills because he was not at fault. It will pay Sylvia's medical bills because she has no health insurance. It will not pay Sylvia's medical bills because she was at fault. It will pay Sylvia's medical bills because Lucien is uninsured.

It will not pay Sylvia's medical bills because she was at fault. If the insured is liable for an accident with an uninsured motorist, uninsured motorists coverage does not apply.

Kathie is the only person named in the declarations of her homeowners insurance policy. When her policy refers to an "insured" it does NOT include: Kathie Kathie's husband Kathie's father-in-law who lives in her house Kathie's next-door neighbor

Kathie's next-door neighbor When a homeowners insurance policy refers to an "insured," the term includes certain other people in addition to the named insured and spouse. Under certain conditions, other insureds may include household residents and people responsible for the named insured's animals.

In most states, what agency serves as the filing agency and rating organization for workers compensation and employers liability insurance? National Association of Insurance Commissioners International Risk Management, Inc. National Council on Compensation Insurance Insurance Services Office, Inc.

National Council on Compensation Insurance The National Council on Compensation Insurance (NCCI) serves as the filing agency and rating organization for workers compensation insurance in the majority of states.

In which of the following cases would the applicant be eligible for coverage through an insurer in the residual insurance market? The applicant is entitled to insurance but cannot buy it through the voluntary market. The applicant wants the most affordable premium available. The applicant is a business entity. The applicant has been rejected by an insurer.

The applicant is entitled to insurance but cannot buy it through the voluntary market. The residual market is a source of coverage of last resort for individuals and businesses that have been rejected by insurers in the voluntary market. These individuals and businesses are otherwise in good faith entitled to buy insurance from these insurers but are prevented from doing so.

The impressions embedded in their neighbor's new concrete driveway are those of the Walker's seven-year-old daughter Margie. Will the Walker's homeowners policy pay for the driveway's repair? The damage to property of others coverage will pay up to $1,000. No; intentional damage is excluded. The medical payments to others coverage applies to this claim regardless of fault. Property damage liability coverage applies up to the policy limit.

The damage to property of others coverage will pay up to $1,000. Because Margie is younger than 13 years, the damage to property of others coverage will pay for Margie's intentional property damage.

When applying for workers compensation insurance, Catalina Corporation's owner overstated its expected payroll and paid a premium based on this inflated estimate. What will happen at the end of the policy period when the insurer discovers the lower payroll figures? The insurer will owe Catalina a refund. The insurer will offset the next year's premium by the amount of the overcharge. No retroactive adjustment will be made, but future premiums will be adjusted to reflect the lower payroll. The insurer will charge Catalina a penalty to reflect its estimating error.

The insurer will owe Catalina a refund. The final premium will be determined by an audit when the policy period ends; since Catalina overpaid, it is due a refund.

Osvaldo and his insurer agree to submit their dispute to arbitration, What can they expect from the arbitration? The panel will consist of three experts. They can choose the state law that will govern the outcome. The hearing will take place at the insurer's home office. A court of law will rule on the outcome.

The panel will consist of three experts. The parties agree in writing to submit their disputes to a panel of three expert arbitrators who decide the matter. Each party selects an arbitrator, and the two arbitrators choose the third arbitrator.

How are umbrella and excess insurance policies alike? They cannot replace primary coverage that has been exhausted. They impose a self-insured retention (SIR). They offer unlimited additional coverage limits for some risks. They extend coverage provided by underlying primary policies.

They extend coverage provided by underlying primary policies. Both umbrella and excess insurance policies extend the limits of underlying primary policies. They also replace primary coverage when the primary aggregate limits of coverage have been exhausted by claims payments.

Mary loses control of her car and strikes Wilmer, a pedestrian. Mary suffers minor cuts and bruises. Katharine sees the accident and must seek psychiatric treatment for her resulting mental anguish. Because Mary's personal auto policy covers liability resulting from bodily injury, it will pay for: Katharine's psychiatrist bills but not Wilmer's doctor bills Wilmer's doctor bills and Katharine's psychiatrist bills Wilmer's doctor bills but not Katharine's psychiatrist bills Mary's medical bills, but not Wilmer's or Katharine's bills

Wilmer's doctor bills but not Katharine's psychiatrist bills Wilmer's bodily harm falls within the definition of bodily injury, but Katharine's mental anguish is neither physically manifested nor tangible, so it is not considered a bodily injury.

Which one of the following entities is most likely to purchase a crime policy with the safe depository endorsement? a bank a credit union a savings and loan a hotel

a hotel The endorsement is designed for businesses other than financial institutions that provide safe deposit boxes for their customers.

When his sports car was returned from the body shop following repairs for collision damage, Guillermo was dismayed to learn that the shop installed parts that were not made by the car's manufacturer. This is because the insurer authorized the shop to use: aftermarket parts inferior parts domestic parts OEM parts

aftermarket parts Parts not manufactured by the original equipment manufacturer are known as aftermarket parts or non-OEM parts.

The lessees of safe deposit boxes endorsement to a commercial crime policy is most likely to be used to cover: hotel employees a gym that has lockers where patrons keep their street clothes and valuables an insured's property that is kept in a bank safe deposit box a bank against claims by customers who rent safe deposit boxes

an insured's property that is kept in a bank safe deposit box The lessees of safe deposit boxes endorsement is used to cover an insured's property that is kept in a safe deposit box in a bank or other depository premises.

Residual markets systems provide a source of insurance coverage for individuals and businesses that have been denied coverage from at least one insurer. are seeking the most suitable coverage for their risks. want the best value for their premium. are entitled to it but cannot buy it through the voluntary market.

are entitled to it but cannot buy it through the voluntary market. Residual market systems are a source of coverage of last resort for individuals and businesses that have been rejected by insurers in the voluntary market. These individuals and businesses are otherwise in good faith entitled to buy insurance from these insurers but are prevented from doing so.

An insurance agent's E&O policy covers insurance producers against errors and omissions claims brought by: insurers only clients only neither clients nor insurers both clients and insurers

both clients and insurers The two major classes of claimants under insurance agents errors and omissions policies are clients and insurers.

Al's farm does not produce enough income to support his family, so he supplements his farming income by working as a carpenter. Which exclusion in Al's farm liability coverage form precludes coverage for any loss resulting from his carpentry activities? business pursuits employers liability personal injury custom farming

business pursuits No coverage applies to losses arising out of non-farming business pursuits engaged in by the insured.

Vito's farm does not produce enough income to support his family, so he works as a self-employed handyman during the winter months. Which exclusion in Vito's farm liability coverage form precludes coverage for any loss resulting from his side business as a carpenter? business pursuits professional services custom farming contractual liability

business pursuits The business pursuits exclusion precludes coverage for a loss arising out of a trade (other than the insured's occupation) that is engaged in for monetary purposes, such as an insured's side business as a handyman.

Even though Beverly has homeowners, personal auto, watercraft liability, and other liability policies, she might also want to buy a personal umbrella policy to protect against: unexpected cancellation or expiration of the other liability policies losses that cannot be paid because of insurer insolvency catastrophic liability losses expensive legal fees

catastrophic liability losses A personal umbrella policy gives the insured a high limit of liability insurance to protect against a catastrophic liability loss. This policy's coverage stacks on top of the primary liability coverage provided by the insured's homeowners, personal auto, watercraft, and any other scheduled underlying liability policies. It also fills in some gaps in coverage in the underlying policy.

License and permit bonds, often required by a municipality or other public body, guarantee that the party seeking the license or permit will: comply with applicable laws or regulations fulfill certain court-imposed duties pay a penal sum if the bond holder defaults in making timely payments pay for all materials and labor used in the activity for which it is licensed

comply with applicable laws or regulations Public bodies require license and permit bonds as a condition to granting a license or permit to engage in a certain activity. The bond guarantees that the bonded party will comply with applicable laws or regulations.

After a serious accident, Melanie's insurance company refuses to pay to have her auto repaired because the cost of repairs equal 90 percent of the vehicle's current market value. The insurer considers Melanie's car to be a(n): general average actual total loss particular average constructive total loss

constructive total loss Typically, if the estimated cost of repairs is 75 to 80 percent or more of the vehicle's actual cash value, the auto is considered to be a constructive total loss.

A combination of toxic fumes and debris from an explosion at a paint supply store forces the evacuation of nearby homes and damages several automobiles. It also damages a neighboring computer repair shop where Quincy delivered his personal computer for repairs. Smoke and water destroy the hard drive containing files in which Quincy stored manuscripts for his doctoral thesis. Under the store's CGL policy, which does NOT qualify as property damage? damage to the automobiles damage to the computer repair shop destruction of the computer's hard drive destruction of the manuscripts

destruction of the manuscripts The CGL policy does not include electronic data in its definition of tangible property for which it may provide coverage.

Unlike an insurance policy, a surety bond: is independent of other contracts can usually be canceled at any time covers only fortuitous losses is a three-party contract

is a three-party contract Three parties-the principal, the obligee, and the surety-are involved in a bonding relationship.

How much advance notice must an insurance company give its policyholder before it cancels a personal auto policy? At least 14 days At least 10 days At least 3 days At least 7 days

At least 10 days Before an insurance company cancels a personal auto policy, it is required to give the policyholder at least 10 days' written notice in advance.

Nelson is the president of his company and has a company car. He does not have a personal auto policy because he does not own another vehicle. Which endorsement to his company's business auto policy (BAP) will protect him when he uses another vehicle? Individual Named Insured Employees as Insureds Hired Autos Specified as Covered Autos You Own Drive Other Car-Broadened Coverage for Named Individuals

Drive Other Car-Broadened Coverage for Named Individuals The Drive Other Car endorsement is useful for those whose only vehicle is a company car. It is excess coverage when the individual drives an auto that is borrowed or hired for personal use.

Through a fidelity bond issued by Omega Assurance, Olga is guaranteed that her employee, Dee, will not be dishonest. In this transaction, Olga is the: obligor. principal surety obligee

obligee The obligee is the party, usually the employer, to whom the surety (Buford) makes the guarantee.

The driver's door on Misty's roadster was damaged in an auto accident. Her insurer wants to have the damage repaired with non-original equipment manufacturer parts. The state law is most likely to require the insurer to do all of the following EXCEPT: waive the deductible disclose the use of non-OEM parts to Misty get Misty's consent to use non-OEM parts ensure that the parts identity their manufacturer

waive the deductible Many states require that OEM parts carry permanent identification and that the insurer disclose and get the consumer's consent to the use of non-OEM parts.

In which case is the driver of the vehicle not an insured person under a company's business auto policy? An employee's spouse borrows a company car for recreation. An executive uses a company car for a business trip. A former employee steals a company truck to transport goods. An employee uses a company van for a personal errand.

A former employee steals a company truck to transport goods. The BAP insures the named insured, a permissive user, and anyone who is responsible for the conduct of the named insured or the permissive user. A thief, not being an employee, is neither a named insured nor a permissive user for whom the named insured is responsible.

Which of the following types of policies would typically NOT be issued by an insurer in the residual market? Workers compensation Property Personal auto liability Homeowners

Homeowners The residual insurance market typically provides a source of coverage for workers compensation, personal auto liability, and property insurance.

Which part of the personal auto policy (PAP) contains an insuring agreement that covers the named insured for the cost of legal representation in a lawsuit arising from an auto accident? Parts A, B, and C Part C-Uninsured/Underinsured Motorists Coverage Part A-Liability Coverage Part B-Medical Payments Coverage

Part A-Liability Coverage The Part A insuring agreement covers the cost of defending the insured from a lawsuit or claim arising from an auto accident.

Reba, First Bank's loan officer, abuses her discretionary authority in more than one way. Which one of her actions would First Bank's financial institution bond be most likely to cover? Reba approves a no-collateral loan to a financially struggling church to get favorable publicity for the bank. Reba subtracts $25,000 from her son's outstanding mortgage loan which had been higher than his home's current value. Reba approves a $2,000 car loan to a student with no current income. Reba falsifies documents to earn a bonus she has not actually qualified for.

Reba subtracts $25,000 from her son's outstanding mortgage loan which had been higher than his home's current value. Arbitrarily reducing the outstanding principal loan to a close relative would cause a financial loss to the bank from which Reba receives an improper financial benefit. This is the kind of loss that a financial institution bond is designed to cover.

As newly elected county treasurer, Reid is required to post a public officials bond that guarantees: Reid is financially able to pay the bond premium Reid's campaign contributions have been audited the surety issuing the bond will immediately pay losses that result from Reid's dishonesty Reid will be required to pay any losses for which he or she is responsible

Reid will be required to pay any losses for which he or she is responsible A public officials bond is not the first recourse to pay a loss. The public official is expected to pay losses for which he or she is responsible. The surety (insurer) agrees to indemnify the government entity against any loss the public official causes and is unable to pay, up to the bond limit.

Janine buys a new car and a personal auto policy to insure it. However, she forgets to cancel the policy she already owns. How will the insurers treat this situation? The automatic termination provision in her first policy will terminate the policy on the effective date of the replacement policy. The automatic termination provision in the second policy will terminate the second policy. The policies will coordinate any benefits they pay. Both policies will be in effect until the first policy expires.

The automatic termination provision in her first policy will terminate the policy on the effective date of the replacement policy. The automatic termination provision, which prevents duplicate coverage on the same vehicle, will automatically terminate coverage in the original policy on the effective date of the replacement policy.

The six ISO homeowners policy forms all offer the same: personal property coverage of Coverage C liability coverage of Section II dwelling coverage of Coverage A property coverage of Section I

liability coverage of Section II Section II, the liability coverage, is the same in all six homeowners forms.

What is the purpose of no-fault auto insurance? to eliminate the need for uninsured motorists coverage to lower insurance costs by reducing or eliminating litigation to make it easier for accident victims to collect from at-fault motorists to make motorists responsible for their own injuries

to lower insurance costs by reducing or eliminating litigation No-fault auto insurance is intended to reduce the cost of auto liability coverage and the cost of litigating auto accident claims.

Employer is headquartered in Minnesota (which is listed in item 3.A. of its workers compensation policy), but its employees are apt to travel to any other state for various business reasons. In this case, the most appropriate entry for Item 3.C., "Other States Insurance," is: "all states and U.S. territories" "None" "all states and U.S. territories except North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico, the U.S. Virgin Islands, and Minnesota" "all states except Minnesota"

"all states and U.S. territories except North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico, the U.S. Virgin Islands, and Minnesota" Employer is apt to do business in any state, so instead of choosing which states to name, Item 3.c. should say "all states except" and then list the monopolistic states and territories and the states designated in Item 3A (Minnesota in this example).

Personal Injury Protection (PIP) covers the insured owner of a motor vehicle under what conditions? If the owner was not negligent in causing an accident with a motor vehicle Only if the insured is in an accident with an uninsured or underinsured motorist If an injured party wins judgement against the owner of a motor vehicle Without regard to fault in an accident with a motor vehicle

Without regard to fault in an accident with a motor vehicle Personal Injury Protection (PIP) insurance covers the owner or operator of a motor vehicle up to the limits of the policy and without regard to the insured's fault in an accident involving a motor vehicle.

The chlorinated water that splashes out of Amber's backyard swimming pool eventually kills expensive trees that her neighbor Jeffrey planted at the edge of his property. He wants Amber to pay for the damage. Her homeowners policy may cover this liability claim if it involves an occurrence. Is it an occurrence? No, because the damage was not sudden and accidental. Yes, because the damage can arise from continuous or repeated exposure to the same harmful conditions. No, because Amber could have prevented the damage. No, because the claim does not involve bodily injury.

Yes, because the damage can arise from continuous or repeated exposure to the same harmful conditions. An occurrence can include not only sudden accidents but also losses arising from continuous or repeated exposure to the same harmful conditions.

Carmella's personal auto policy describes some coverages for vehicles that are not included in the policy's definition of "your covered auto." Which vehicle is included in this definition? a coupe she rents during a vacation trip a boat trailer that she tows behind her truck a utility trailer she borrows from a neighbor her boyfriend's sports car that she borrows

a boat trailer that she tows behind her truck An owned trailer that is designed to be pulled behind a private passenger auto is within the definition of "your covered auto."

Public officials in the village of Castle Heights are covered under the same public officials bond, and each of the bonded officials is identified by name within the bond. What kind of bond is Castle Heights' public official bond? a position schedule bond an individual bond a name schedule bond a blanket bond

a name schedule bond Name schedule bonds are written on employees or officials named in a list or "schedule."

The difference between the Pollution Liability Coverage Form (CG 00 39) and the Pollution Liability Limited Coverage Form (CG 00 40) is that the Limited Coverage form: does not provide an extended reporting period prohibits cancellation if it is issued to comply with a law or regulation does not cover cleanup costs has a lower dollar limit

does not cover cleanup costs CG 00 40 provides the same bodily injury and property damage liability coverage as CG 00 39 with the exception of coverage for cleanup costs.

Enrique and Troy live in a fraternity house. Because they often share their cars, they each have keys to the other's car. Troy has a personal auto policy (PAP), but Enrique is uninsured. Troy has an accident while driving Enrique's car. For whom will Troy's PAP provide liability coverage? for neither Troy nor Enrique for Troy but not for Enrique for both Troy and Enrique for Enrique but not for Troy

for Troy but not for Enrique Troy's PAP will protect him because he was driving a nonowned vehicle with the owner's permission.

Which of the following activities, if located on the farm premises, would NOT be considered a farming operation covered by the farm liability coverage form? harvesting of shellfish cultivation of aquatic plants roadside produce stand gift shop

gift shop The form defines "farming" as an agricultural or aquacultural enterprise, including the operation of roadside stands, on the farm premises. It typically does not include retail activity.

When an insurance policy provides crime coverage on a discovery basis, coverage is triggered by a loss that: is discovered during the policy period or within 60 days after the policy period ends occurs no more than 90 days after the policy period ends occurs after the retroactive date and is discovered during the policy period occurs during the policy period and is discovered within one year after the policy period has ended

is discovered during the policy period or within 60 days after the policy period ends Discovery-based coverage applies to loss discovered during the policy period or within 60 days after the policy period ends. Loss sustained coverage applies to loss that occurs during the policy period and is discovered within one year after the policy period ends.

An insurance policy is different from a surety bond in that an insurance policy: permits the insurer to subrogate against its own insured requires the policyowner to pledge personal assets as security is issued with the expectation that some insureds will have losses is a three-party contract when liability claims are involved

is issued with the expectation that some insureds will have losses Although they do not know which insureds will suffer a loss, insurance underwriters anticipate that a certain number of losses will occur; insurance is a mechanism for spreading the financial impact of those losses.

An insurer can use the CGL policy's limited fungi or bacteria coverage endorsement to: eliminate its exposure to mold-related bodily injury liability claims limit its exposure to property damage liability claims for mold damage eliminate its exposure to property damage liability claims for mold damage limit its exposure to mold-related bodily injury or property damage liability claims

limit its exposure to mold-related bodily injury or property damage liability claims An insurer can limit CGL coverage with respect to bodily injury or property damage resulting from mold through the limited fungi or bacteria coverage endorsement.

Which is NOT an "auto" for purposes of the business auto policy (BAP)? trailers trucks semitrailers mobile equipment

mobile equipment Mobile equipment is not an "auto" as defined in the BAP. The BAP covers auto liability, while a commercial general liability (CGL) insurance policy covers mobile equipment liability.

Consuela's business auto policy (BAP) has comprehensive and collision coverage on all owned autos. Consuela and several employees take some of these autos on a hunting expedition. Several are damaged. Which occurrence will the BAP cover? blown tire overturn electrical system failure depreciation

overturn Diminution, breakdown, and tire blowouts are excluded, but collision coverage applies to a rollover even if it is not on a roadway.

Phoebe rents her home. She loses control of her car on the icy driveway and crashes into the garage door. It will cost $1,000 to repair or replace the door. The property damage liability coverage of Phoebe's personal auto policy will: pay for the damage not pay for the damage because the car was in Phoebe's care, custody, and control pay for the damage to Phoebe's car but not for the damage to the garage not pay for the damage because she does not own the home

pay for the damage Although the PAP does not cover liability for damage to others' property that the insured possesses, it does cover such property when the insured rents a residence or private garage.

In connection with an upcoming construction project in which the firm hopes to participate, Roosevelt Construction is required to furnish a performance bond guaranteeing that Roosevelt will: obtain the licenses and permits necessary to perform the work deliver a completed project free of liens perform the work in accordance with the contract agree to do the work at the price quoted

perform the work in accordance with the contract A performance bond guarantees that, if the contractor is awarded the job, it will agree to perform the work in accordance with the construction contract and related documents.

Owen Corporation has a fidelity bond issued by Alpha Assurance in which Alpha guarantees to Owen that Gregg, who is Owen's corporate treasurer, will not be dishonest. In this transaction, Gregg is the: principal surety obligor obligee

principal The principal is the party, typically the employee, whose honesty is guaranteed. Owen is the obligee, Alpha is the surety, and Gregg is the principal.

Bradley Corporation, a large business with excellent loss experience, wants to self-insure its workers compensation exposures rather than purchase commercial insurance. In most states, Bradley will NOT be permitted to self-insure unless it: provides satisfactory proof that Bradley can meet its obligations to injured workers provides evidence that self-insurance has the approval of the employees' union authorizes the state to act as Bradley's agent for service of suits requires Bradley's non-union employees to sign a waiver restricting their benefits

provides satisfactory proof that Bradley can meet its obligations to injured workers Almost all states permit an employer to self-insure workers compensation provided that, among other requirements, the employer proves it is able to directly pay required benefits to injured workers.

When the court appointed Delia as guardian for her late sister's children's financial assets, it also required her to furnish a fiduciary bond. The fiduciary bond does NOT guarantee that Delia will: faithfully account for all property raise the children in their parents' religious faith execute these duties in good faith be accountable for any deficits

raise the children in their parents' religious faith A fiduciary bond guarantees that the fiduciary will exercise duties faithfully, account for all property, and make good for any deficiency.

A covered auto listed in the personal auto policy's declarations page must be owned by the named insured, or the insured must have leased it for at least six months. two months. one month. three months.

six months. The vehicle listed in the PAP's declarations page as a covered auto must be owned by the named insured (or leased by the named insured for at least six months).

Newton, a garbage truck driver, breaks a hip when he falls from the cab. Doctors expect a full recovery, but Newton must remain in bed with the hip immobilized until the cast is removed. Newton's condition would be categorized as a: temporary partial disability permanent partial disability permanent total disability temporary total disability

temporary total disability Newton is expected to recover from the injury and return to employment, but he is unable to do any type of work while he is recovering because he is temporarily totally disabled.

Oil and Drilling Construction Company (ODCC) is operating a fixed oil well platform located 12 miles off the coast of Louisiana. ODCC is obligated to provide benefits for its workers under the terms of: the Outer Continental Shelf Lands Act the Defense Base Act the Jones Act Louisiana workers compensation statutes

the Outer Continental Shelf Lands Act The Outer Continental Shelf Lands Act applies to workers who are not masters or crew members of a vessel working on a continental shelf.

In general, what do fidelity bonds guarantee? the accuracy and veracity of statements in a written document that the insurer issuing the bond will not pay any losses the honesty of a person in a trusted position that the surety will cover theft losses attributable to an employee

the honesty of a person in a trusted position In general, fidelity bonds guarantee the honesty of a person who is in a trusted position.

An employer that is unable to purchase workers compensation insurance in the state's voluntary private market may be able to procure it through: the state's competitive fund a commercial general liability policy the state's surplus lines market the state's residual market facility

the state's residual market facility Employers that are unable to purchase workers compensation insurance in the voluntary private market can buy it from the state residual market facility (also called assigned risk plans). Surplus lines insurance is coverage that is unavailable by any insurer in a state and therefore must be procured through a non-admitted insurer.

All the following statements regarding Coverage J (medical payments) of the Farm Liability form are correct EXCEPT: it may help avoid a lawsuit its underlying purpose is to foster a good relationship between the potential claimant and the insured it covers medical expenses incurred within three years of an accident causing bodily injury there are no exclusions associated with this coverage

there are no exclusions associated with this coverage Under Coverage J, the insurer pays reasonable medical expenses incurred within three years of an accident that causes bodily injury. An underlying reason for this coverage is to develop a good relationship between the potential claimant and the insured or insurer and thus avoid a lawsuit. It is subject to many of the same exclusions applicable to the bodily injury and property damage liability coverage.

Linwood requires each of its public officials to furnish a public officials bond. These bonds will normally terminate: if Linwood does not pay the renewal premium when the bonded public official leaves office when its aggregate limits are exhausted by payment of two or more settlements or judgments a year from their date of issue

when the bonded public official leaves office Public officials bonds usually terminate only when successors have been elected or appointed or the current official leaves office for any reason .

An employee of Company was injured after a supervisor intentionally disabled safety equipment to speed up production. Due to this willful misconduct, a court ordered Company to pay punitive damages in addition to workers compensation benefits. In this case, the workers compensation insurer is obligated to pay: punitive damages but not workers compensation benefits both workers compensation benefits and punitive damages nothing workers compensation benefits but not punitive damages.

workers compensation benefits but not punitive damages. According to the workers compensation policy, the insured is responsible for any payment in excess of those provided by workers compensation law. The insurer assumes no responsibility for punitive damages resulting from the employer's willful misconduct.