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Casualty Insurance Test

April 23, 2013 by Rhonda Ward

This is the final test for the Casualty Insurance course. In order to receive credit, you must pass this test and submit your results along with your full name and license number.

Casualty Final Test

The significance of liability exposure rests on the possible severity of a loss. The extent of the loss to a person’s own property is normally limited by the value of the property. In liability exposures, the amount of loss is virtually limitless.
- True
- False
Which of the following is NOT a major element in determining the tort of negligence?
- Legal Duty – The obligation to conform to a certain standard of conduct for the protection of others. When the insured and a third party can’t agree on legal liability, the courts make the decision.
- Standard of Care - The degree of care that a reasonably prudent person should exercise in the same or similar circumstances.
- Proximate Cause – A natural and continuous sequence, unbroken by any efficient intervening cause, that produces injury and without which the result would not have occurred.
- Actual Loss or Damage - Loss or damage resulting from the real and substantial destruction of property of another or physical injury to another.
- Additional Damages - Loss of use, pain and suffering, legal fees arising from the actual loss or damage.
The Property Owner does NOT necessarily owe the same degree of care to everyone present on the property, i.e. an invited guest is owed a greater degree of care than a trespasser.
- True
- False
The insurer must notify the insured of cancellation 20 days in advance if the policy has been in effect for more than ___ days.
- 20
- 40
- 60
- 90
A student is considered insured if they are a relative under the age of 24 and enrolled in school fulltime and lived in the residence before attending school or they are under 21 and in the insured’s care.
- True
- False
_______________: One or two family dwelling, where the insured resides, including other structures and grounds at the location. If the dwelling is more than one unit, the insured must reside in one of the units.
- Residence Premesis
- Insured Property
- Listed Premesis
In ___________________, the insurer will pay reasonable expenses incurred for necessary medical and funeral services caused by an accident, sustained by an insured, and incurred within three years from the date of an accident.
- Liability Coverage
- Medical Payments Coverage
- Out of State Coverage
Comprehensive – Coverage includes physical damage to a covered automobile or its equipment from any cause, except colliding with another object or overturn. It doesn’t cover wear and tear, mechanical breakdown, or blowouts.
- True
- False
_______ provides payment for bodily injury to the insured and vehicle occupants when struck by an uninsured driver who is legally responsible for the accident.
- Uninsured Motorist Coverage
- Commercial Coverage
- Liability Coverage
Named Insured – An individual (example – employee), a corporation, or a partnership. Will a neighbor using a covered automobile with permission qualify as a named insured?
- Yes
- No
______________: Any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.
- Waste
- Pollutant
- Liability
Coverage Form C – Theft, Disappearance and Destruction covers: a. Money and securities from losses resulting from theft, disappearance, and destruction inside the premises. b. Damage caused to the premises or its exterior, committed in the course of the crime. c. Loss to cash containers in the premises, and money and securities outside the premises, while in the custody of an armored vehicle company.
- True
- False
Which of the following does Coverage Form E – Premises Burglary NOT cover?
- property, other than money or securities, inside the premises against loss caused by burglary.
- losses of property by actual or attempted burglary or robbery of a watchperson if the premises were forcibly entered.
- loss resulting from fire, vandalism, or losses resulting from employees, directors, or trustees of the insured.
The following are applicable to Business Liability Coverage EXCEPT:
- Expected or Intentional Injury.
- Contractual Liability.
- Due to war, including civil war, insurrection, rebellion, or revolution.
- Liquor Liability.
Business Income Coverage Forms: Commercial Property coverage forms that pay for loss of income that the insured sustains due to a direct physical loss from a covered peril that forces the insured to suspend operations until the property can be repaired. Rebuilt or replace with reasonable speed. Available with or without Extra Expense coverage.
- True
- False
_______________: Allows the employer to deny liability on the basis that the employee knew what the situation was like before they were employed, and therefore, assumed all the risk of injury themselves.
- Workers Compensation Laws
- Assumption of Risk
- Fellow Servant Rule
True or False: Louisiana has a compulsory Workers’ Compensation law. There is a penalty of $250 per employee up to $10,000 for failure to secure compensation.
- True
- False
An _________________ is written over a primary policy to increase the overall amount of protection. It is written on a “following from” basis, which means that it only increases the overall limit of coverage; it doesn’t broaden coverage.
- Personal Umbrella Policy
- Excess Liability Policy
- Medical Professional Insurance
________________: A bond guaranteeing that the contractor will faithfully perform contractual Obligations to the Obligee.
- Bid Bond
- Performance Bond
- Completion Bond
Whenever the DOI deems it necessary, but at least once every _____ years, the DOI may make, or direct to be made, an examination of the affairs and financial condition of any insurance company in the process of organization, or applying for admission or doing business in Louisiana.
- five
- ten
- eight
Name
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Filed Under: Casualty Insurance

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