Perils
A Peril is :
A) Chance of Loss
B) Change of Loss
C) Cause of Loss
D) Claim of Loss
Cause of Loss
What is a hazard?
A. Staying home watching Netflix
B. Anything that increases the chance of a loss
C. Any possibility of financial loss
D. A peril or loss of property
B. Anything that increases the chance of a loss
Liability insurance:
A. Is a compensation policy
B. Is written to protect a third party
C. Is written to protect the lien hold
D. Covers a third party
D. Covers the Third
What is the main purpose of tort law?
A. To minimize the amount of insurance claims made
B. To determine responsibility for damages
C. To prosecute the responsible party
D. To assign punitive damages to the responsible party
B. To determine responsibility for damages
An individual who fails to show even the minimum degree of care that could be expected of a prudent person, showing a total disregard for the safety of others, is guilty of:
A. Vicarious negligence
B. Gross negligence
C. Comparative negligence
D. Tort negligence
B. Gross negligence
Jimmy had a loss in his homeowners insurance his policy coverage stated perils covered: Fire/Lighting
A)Named Peril
B) Open Peril
C) Direct Loss
D) Closed Peril
A) Named Perils
Javier was caught stealing from his employer and drove off fast and reckless and crashed into Paco's backyard:
A) Morale Hazard
B) Life Hazard
C) Moral Hazard
D) Physical Hazard
Liability losses are referred to as:
A. First party losses
B. Second party losses
C. Third party losses
D. None of the above
A. First Party Losses
If it is proven that another person’s negligence contributed to an injury, what gives the injured party the right to seek compensation?
A. Judge Judy Law
B. Contract law
C. Criminal law
D. Tort law
D) Tort Law
A rule whereby the damages a person is awarded are reduced to the extent of that person’s own negligence is:
A. Contributory negligence
B. Comparative negligence
C. Gross negligence
D. Vicarious negligence
B. Comparative negligence
What type of policy protects against loss from any type of peril except those that are specifically excluded?
A. Specified peril
B. All risk or open peril
C. Named peril
D. Stated value
B) All Risk or Open Peril
Cardi's car has worn out tires in her car and her tail light is broken:
A) Physical Hazard
B) Road Hazard
C) Moral Hazard
D) Auto Hazard
A) Physical Hazard
The liability that an employer has for the acts of his employees is referred to as:
A. Absolute liability
B. Assumed liability
C. Vicarious liability
D. Gross liability
C. Vicarious Liability
Under tort law, a person can face a claim for legal liability on the basis of all of the following except:
A. Absolute liability
B. Intentional tort
C. Negligence
D. Breach of contract
D) Breach of contract
When a person cannot file a negligence claim because he is also found to be negligent, this is referred to as:
A. Comparative negligence
B. Contributory negligence
C. Vicarious negligence
D. Strict negligence
B. Contributory negligence
Open peril policies would provide coverage for:
A. Policies that provide broad form coverage only
B. Only risk with open values
C. All risk with no exclusions
D. All risks, except those specifically excluded
D. All risks, except those specifically excluded
A) Moral Hazard
B) Good Time Hazard
C) Morale Hazard
D) Physical Hazard
C) Morale Hazard
The insurance company will collect on your behalf:
A) Litigate
B) Co-Insurance
C) Subrogate
D) Reimburse
C) Subrogate
Under tort law, the person committing the tort is known as:
A. Tortgeezor
B. Tortfeasor
C. Tort-ceasor
D. Tort sinner
B. Tortfeasor
Driver A runs into Driver B’s car in an intersection. Driver A sustains damages of $5,000. It was determined that Driver A was 40% at fault and Driver B was 60% at fault. Under comparative negligence, how much can Driver A receive from Driver B’s insurer?
$3,000
Special Form or "Open Perils" -
Insurance companies exclude things that are:
Catastrophic
Intentional or Maintenance (wear and tear)
Better insured under another policy (Flood/Earthquake)
*Exception to exclusions is "following a fire"
Name the 3 Types of Hazards
Morale - Moral - Physical
When a person transfers his “third party” money rights, this is an example of:
Subrogation
Under breach of contract, name one thing that can be covered?
Damages, attorney fees and court cost
Driver A runs into Driver B’s car in an intersection. Driver A sustains damages of $5,000. It was determined that Driver A was 40% at fault and Driver B was 60% at fault. Under contributory negligence, how much can Driver A receive from Driver B’s insurer?
$5000