Insurable Interest in Property Insurance Quiz
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Questions and Answers

Who can possess insurable interest in property through their security interests?

  • Mortgageholders (correct)
  • Homeowners associations
  • Real estate agents
  • Property developers
  • What is an example of an insurable interest based on a legal relationship with the subject of insurance?

  • Ownership of a vehicle
  • Ownership interest in property (correct)
  • Ownership of a business
  • Investment in stocks
  • Which of the following is a component of liability coverage in property insurance policies?

  • Protection in case of lawsuits (correct)
  • Coverage for medical expenses
  • Protection against natural disasters
  • Reimbursement for property damage
  • Who does liability coverage in property insurance policies protect against accidental property damage caused by?

    <p>Pets</p> Signup and view all the answers

    What is the term for holding a person liable for damages caused by their actions or products, even if they were not at fault?

    <p>Strict liability</p> Signup and view all the answers

    Which relationship is necessary for the principle of vicarious liability to apply?

    <p>Principal-agent relationship</p> Signup and view all the answers

    What is another term for absolute liability?

    <p>Strict liability</p> Signup and view all the answers

    Which type of liability holds the defendant responsible for the consequences flowing from an activity even in the absence of fault or criminal intent?

    <p>Absolute liability</p> Signup and view all the answers

    Under what circumstances may a person be held liable under strict liability?

    <p>If the defendant was not involved in ultra hazardous activities</p> Signup and view all the answers

    What does the principle of vicarious liability mean?

    <p>Let the principal be liable for an employee's negligent actions</p> Signup and view all the answers

    What is the rule of absolute liability?

    <p>Liability without exceptions</p> Signup and view all the answers

    What is the main characteristic of absolute liability?

    <p>Holds defendant responsible for any losses</p> Signup and view all the answers

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