Unit 4 Quizzes

Which of the following is NOT a common defense against negligence

A. Compulsory Negligence

B. Contributory Negligence

C. Comparative Negligence

D. Intervening Cause

A

Which of the following is an example of a liability loss

A. An insured’s dog runs away and attacks and injures a neighbor boy

B. A home is damaged in a tornado

C. A farm house is damaged in a fire

D. An insured leaves her car unlocked and her purse is stolen

A, the others are property losses

A civil wrong that causes damage to another person or business is known as

A tort

Absolute liability is imposed by law on those participating in hazardous activities or occupations. Another name for absolute liability is

Strict liability

Kathleen was driving too fast on an icy highway, caused a head on collision, and totaled William’s car. William suffered from a broken neck and lost wages after missing four weeks of work. These direct and specific damages are considered to be

Special compensatory damages

Liability Insurance definition

protects an insured from financial losses arising out of liability claims by transferring the burden of the loss from the insured to insurer

In general, liability policies do NOT cover damage caused to

the insured - they cover the third party

What is an example of a personal injury

hurt feelings → A businessowner makes false statements about his competition all over social media

When the payment of a claim does not reduce the amount available to pay future occurrences, this is known as

Restoration of limits

Payments that are made in addition to the policy’s regular limit of liability are known as

Supplementary Payments

Split limit, single limit, and per person limits in a liability policy apply per

Occurrence

Which of the following is not a common liability policy exclusion?

A. Losses covered under worker’s compensation laws

B. Damage to property owned by the insured

C. Bodily injury to the insured

D. Damage to another person’s property

D - Damage to other’s property is usually covered