Insurance chap 4
Tort
A civil wrong
Personal injury includes all of the following, except: Slander Libel Bodily injury False arrest
Bodily injury
The limit of liability that applies to bodily injury, property damages, or both in any one occurrence is the:
Combined single limit
Which of the following types of liability limits represents the maximum amount payable for a single occurrence, without regard for the number of claimants?
Combined single limit
In liability insurance, which of the following is the maximum amount that the coverage will pay for loss to any one person regardless of overall policy limits?
The per person limit
Which of the following relationships involves vicarious liability?
employer and employee
A liability policy contains a per person bodily injury limit of $25,000 and a per occurrence limit of $50,000. If an accident were to occur and three persons have claims of $20,000 each, the total amount paid is:
$50,000
Liability insurance is a two-party contract with payments made to which of the following?
A third party
Which term describes the maximum amount payable for loss from all occurrences within a policy period?
Aggregate limit
Which of the following is an example of vicarious liability?
An employer's liability for the acts of an employee
Which of the following describes the policy liability limits that may be applied to either bodily injury or property damage, in any combination?
Combined single limits
Which of the following defenses against negligence prevents recovery for injuries caused by a negligent party if the claimant was also negligent?
Contributory negligence
Which of the following relationships involves vicarious liability? Wholesaler and retailer Teacher and student Husband and wife Employer and employee
Employer and employee
Payments for mental anguish or loss of consortium are known as:
General damages
A second negligent act that interferes with the chain of events leading to a loss is known as a(n):
Intervening cause
Which of the following statements about an aggregate limit is correct?
It applies to losses from all occurrences within a specified policy period
All of the following are true of negligence, except: It is a type of tort It is the failure to use ordinary care It does not require a duty to be owed It does not include breach of contract
It does not require a duty to be owed
Personal injury liability includes which of the following?
Libel and slander
Bodily injury coverage may include payments for which of the following?
Loss of earnings
Special damages would be awarded for all of the following types of loss, except:
Pain
A guest on the insured's premises is injured and incurs medical expenses, which the insured's policy covers up to a certain limit. Which of the following statements about these medical payments is true?
Payments are made without regard to negligence
In liability insurance, the most the policy will pay for a loss arising out of any one occurrence, regardless of overall policy limits, is known as the:
Per occurrence limit
If the amount of liability insurance coverage is divided between bodily injury and property damage claims, the policy limits are which of the following?
Split limits
All of the following are common law defenses against negligence, except: Statute of limitations Contributory negligence Intervening cause Assumption of risk
Statute of limitations
The Severability condition of a casualty insurance policy states:
That policy coverage considers each insured separately, except for the limit of liability
Which of the following is not essential in determining if an action is due to negligence
The injured party must prove the wrongdoer committed a criminal act
When an insured obtains a liability insurance policy, which of the following statements about their policy will be correct? The insurer has a duty to defend the insured, with defense costs being subject to the policy limits The insured's failure to maintain solvency will result in penalties applied to claim payments The insured's absolute liability for owning fireworks cannot be covered by the policy The insured's medical payments coverage has a per person limit
The insured's medical payments coverage has a per person limit
Insurers are subject to all of the following liability policy terms, except: When this policy and another liability policy through a different insurer cover the same risk on a pro rata liability basis, each insurer must pay its proportion of a covered loss If the insurer broadens coverage without an increase in premium, that broadened coverage must automatically apply to the insured's policy The insurer is not required to provide a defense if the insured's policy limits have been exhausted The insurer is relieved of its obligations if the insured is bankrupt
The insurer is relieved of its obligations if the insured is bankrupt
An insured has a casualty insurance policy. If the insured becomes insolvent during the policy period, how does the insurer respond to a claim?
The insurer responds normally, as it is not relieved of its policy obligations
The Insuring Agreement on a liability policy includes information regarding:
The insurer's duty to defend the insured when a claimant brings legal action against the insured
All of the following statements about torts are correct, except: They must be committed intentionally Negligence is a type of tort Liability insurance excludes intentional torts They constitute the basis of a claim against the insured by a third party
They must be committed intentionally
The insurance provided by a liability policies applies:
To each insured separately, except for policy limits
