Resource Question - Liability Ch#5
29 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the definition of third party in a liability insurance contract?

  • The insured party
  • The insurer
  • The party who is not the insured or the insurer (correct)
  • The party who is liable for the loss or injury

    • What is the purpose of liability insurance?

  • To protect against intentional property loss or body injury to others
  • To protect against legal liability for unintentional property loss or body injury to others (correct)
  • To protect against legal liability for intentional property loss or body injury to others
  • To protect against unintentional property loss or body injury to oneself

    • What is the definition of third party in a liability insurance contract?

  • The insurance agent who sells the policy
  • The person who is insured
  • The person who is injured and files a claim (correct)
  • The person who is responsible for causing the injury

    • What does "third party" refer to in a liability insurance contract?

    <p>The party that is not the insured or the insurer in a liability insurance contract</p> Signup and view all the answers

    What makes underwriting liability insurance challenging?

    <p>The possibility of lawsuits</p> Signup and view all the answers

    Which type of businesses have heightened premises liability exposure?

    <p>Movie theaters and nightclubs</p> Signup and view all the answers

    Why is liability insurance challenging to underwrite?

    <p>Due to the possibility of lawsuits</p> Signup and view all the answers

    Which type of entertainment venue has heightened premises liability exposure?

    <p>Movie theaters</p> Signup and view all the answers

    What is the reason why liability insurance is challenging to underwrite?

    <p>The possibility of lawsuits</p> Signup and view all the answers

    How is slip and trip exposure assessed?

    <p>By evaluating the condition of the property and warning signs in hazardous areas</p> Signup and view all the answers

    How is slip and trip exposure assessed?

    <p>By evaluating the condition of the property and warning signs in hazardous areas</p> Signup and view all the answers

    Which type of entertainment businesses have heightened premises liability exposure?

    <p>Movie theaters and nightclubs</p> Signup and view all the answers

    What factors are considered in product liability underwriting?

    <p>The manufacturer of products, final use, distribution, testing, warnings, and quality control</p> Signup and view all the answers

    What factors are considered when underwriting product liability insurance?

    <p>The manufacturer of products, final use, distribution, testing, warnings, and quality control</p> Signup and view all the answers

    How is slip and trip exposure assessed?

    <p>By evaluating the condition of the property and warning signs in hazardous areas</p> Signup and view all the answers

    What factors are considered in product liability underwriting?

    <p>The manufacturer of products, final use, distribution, testing, warnings, and quality control</p> Signup and view all the answers

    What is host liquor liability?

    <p>The potential liability a person faces when serving alcohol to guests</p> Signup and view all the answers

    Why might employers need to purchase product liability insurance even if workers are eligible for worker's compensation?

    <p>To protect against lawsuits from customers or third parties</p> Signup and view all the answers

    What is the ABC rule used for in liability lawsuits?

    <p>To establish the duty of care, breach, and causal relationship needed to prove negligence</p> Signup and view all the answers

    Which case established principles for commercial slip and fall liability?

    <p>The Preston v. Canadian Legion case</p> Signup and view all the answers

    When might an employer need to purchase product liability insurance?

    <p>When workers are eligible for worker's compensation</p> Signup and view all the answers

    What is host liquor liability?

    <p>The potential liability a person faces when serving alcohol to guests</p> Signup and view all the answers

    What is the purpose of personal umbrella policies?

    <p>To offer higher limits of insurance, drop-down coverage, and wider territorial limits</p> Signup and view all the answers

    What is the purpose of personal umbrella policies?

    <p>To offer higher limits of insurance, drop-down coverage, and wider territorial limits</p> Signup and view all the answers

    What is personal umbrella insurance?

    <p>Insurance that offers higher limits of insurance, drop-down coverage, and wider territorial limits</p> Signup and view all the answers

    What is the potential liability exposure when doing volunteer work?

    <p>Liability for the volunteer, especially when working with children or in sports</p> Signup and view all the answers

    What is a potential liability exposure when working as a volunteer?

    <p>Liability exposure, especially when working with children or in sports</p> Signup and view all the answers

    What are some technological changes that can create new liability exposures?

    <p>Drones and e-commerce</p> Signup and view all the answers

    What can create new liability exposures in today's world?

    <p>Technological changes, such as drone technology and e-commerce</p> Signup and view all the answers

    Study Notes

    • Liability insurance protects against legal liability for unintentional property loss or body injury to others.
    • Third party refers to the party that is not the insured or the insurer in a liability insurance contract.
    • Liability insurance is challenging to underwrite due to the possibility of lawsuits and uncertain legal liability.
    • Entertainment risks like movie theaters and nightclubs have heightened premises liability exposure.
    • Slip and trip exposure is assessed by evaluating the condition of the property and warning signs in hazardous areas.
    • Product liability underwriting considers the manufacturer of products, final use, distribution, testing, warnings, and quality control.
    • The Preston v. Canadian Legion case established principles for commercial slip and fall liability.
    • Employers may need to purchase product liability insurance even if workers are eligible for worker's compensation.
    • Liability insurance for additional named insureds increases the possibility of lawsuits and costs to the insurer.
    • The ABC rule establishes the duty of care, breach, and causal relationship needed to prove negligence in a lawsuit.
    • Personal liability can be affected by factors such as lifestyle, occupation, hobbies, and previous losses.
    • Host liquor liability refers to the potential liability a person faces when serving alcohol to guests.
    • Liability arising from social business gatherings is often excluded and may require additional coverage.
    • A student's activities away from home can result in liability for the applicant.
    • Volunteer work can present a liability exposure, especially when working with children or in sports.
    • Personal umbrella policies offer higher limits of insurance, drop-down coverage, and wider territorial limits.
    • Technological changes, such as drone technology and e-commerce, can create new liability exposures.
    • Drones used for commercial purposes require specialized commercial coverage.
    • Many CGL policies have exclusions for data liability arising from e-commerce.
    • Underwriters should be aware of these factors and assess the liability exposure of each applicant.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on liability insurance and its various types with this informative quiz. From slip and trip exposure to product liability underwriting, this quiz covers all the essential topics of liability insurance. You will also learn about the principles established by the Preston v. Canadian Legion case, the ABC rule, and the liability exposure of volunteer work and social business gatherings. So, whether you're an insurance professional or just interested in knowing more about liability insurance, this quiz is perfect for you.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser