AU 62 Exam Practice

Study Notes

Auto and Liability Coverage

Auto No-Fault Laws prevent consumers from filing lawsuits after an accident, promoting quicker claim settlements.
Claim Management involves assessing and processing claims to optimize payouts and ensure proper resolutions.
General Liability Coverage Forms protect businesses against third-party claims of bodily injury, property damage, and personal injury.

Insurance Policies and Regulations

Contractors may use subcontractors, which requires careful evaluation of potential liabilities and coverage.
Insurers must classify General Liability accounts accurately for appropriate premium assessments.
Professional Liability Insurance safeguards professionals against claims of negligence and inadequate performance.

Special Liability Considerations

Types of Product Defects include defects in manufacturing, design, and marketing that may lead to liability claims.
Potentially Liable Parties consist of manufacturers, distributors, and retailers who might share responsibility in product liability cases.
Understanding coverage extensions is essential for claims involving professional services, especially for architects and healthcare providers.

Claims Valuation and History

Establishing Valuation of Liability Claims is crucial for evaluating potential settlements and reserves.
Loss History analysis helps insurers forecast future claims and assess risks based on past incidents.
Retrospective Rating Plans adjust premiums based on loss experience over a set period, encouraging loss control.

Unique Legislation and Standards

The Jones Act provides seamen with the right to seek damages for injuries while working on navigable waters.
The US Longshore and Harbor Workers' Compensation Act offers coverage for maritime employees, ensuring they receive compensation for work-related injuries.
OSHA regulates workplace safety, mandating that businesses adhere to specific health and safety standards to protect workers.

Risk Evaluation and Underwriting Practices

Evaluating Key Underwriting Considerations involves assessing the specific risks associated with construction, healthcare, and workers compensation.
Large Deductible Plans allow businesses to take on more risk upfront in exchange for lower premium costs.
Telematics in underwriting offers real-time data on vehicle use, enhancing risk assessment for commercial auto coverage.

Special Programs and Control Measures

Self-Insurance Plans give businesses the option to retain their own risks, often utilizing reserves for potential claims.
Using Commercial Liability Risk Control strategies minimizes exposure to claims by implementing proactive safety measures and audits.
Understanding Excess Liability Insurance coverage enhances protection beyond standard limits, suitable for high-risk industries or accounts.

Summary of Coverage Goals

Coverage goals for Professionals include ensuring adequate liability limits and clearly defined exclusions to protect against specific risks.
Covered Acts and Consequences detail the specific incidents and subsequent liabilities that policies protect against, essential for understanding coverage adequacy.
The purpose of liability insurance is to protect against financial loss due to legal claims, ensuring businesses can operate with reduced risk.

Description

Test your knowledge on Auto Insurance concepts with this AU 62 Exam Practice quiz. Covering topics from No-Fault Laws to Medical Payments, this quiz is designed to help you master essential insurance principles and claim management strategies. Prepare effectively for your upcoming exam!