Errors and Omission and Liability Coverage Overview FINAL EXAM (AR 201299)

Increased competition in the consumer marketplace leads to which of the following consequences?

What circumstances would cause a contract-related case to be heard in a liability court?

If one private citizen was to crash his car into another private citizen’s house, and the homeowner was to bring the driver to court, which party in the suit would be known as the tortfeaser?

Which of the following is NOT a type of damage paid by a liable party in court?

During the risk management process, which of the following steps is completed after a risk is identified and before the risk response is determined?

If an Errors and Omissions or Professional liability policy does not cover certain types of damages, those damages will be listed as which of the following?

Sickness, disease, and death would be categorized as which type of injury within a commercial general liability form?

Which of the following is true of an occurrence-based policy?

Which of the following is not an example of bad faith?

Which insuring agreement would typically have the least number of exclusions?

Over the decades, the need for liability protection has done which of the following?

The attitude of the public has shifted in which of the following ways in reference to lawsuits?

Complex services and products with little to no testing have what kind of effect on the number of filed lawsuits?

Changes in the legal environment have made lawsuits against individuals and companies which of the following?

Certain lawyers are more involved in liability lawsuits for which of the following reasons?

Given the current legal climate, which of the following is a likely outcome of an agent making oral promises about a contract that are not true?

A contract created entirely by one party then signed by another, with no negotiation, is known as which of the following?

Which of the following is a common issue with using contracts of adhesion or contracts signed without any negotiation?

How can a professional reduce the consequences of their liability?

Law that is built on court decisions or precedents is referred to as which of the following?

If one private citizen was to crash his car into another private citizen’s house, that act of destruction would be known as which of the following?

If a court determines that a professional did not show a reasonable level of care while performing his or her duties, that professional might be charged with which of the following?

In order for negligence to be legally established, which of the following must be true?

Which of the following would invalidate a claim of negligence in a court case?

Which of the following defenses would be effective against a claim of negligence?

Which of the following is an effective defense against claims of negligence?

A party can be held liable in which of the following scenarios?

In order for a party to be held liable, which of the following must be true?

Individuals who perform services considered vital to their customers, such as those associated with finances, health, or housing, are considered to be which of the following?

Professionals should seriously consider liability insurance for which of the following reasons?

If a professional is considered a fiduciary, the law expects them to follow which six specific duties?

Why does managing business risks result in a reduction in losses?

In insurance, a risk is defined as which of the following?

A hazard does which of the following?

Which of the following describes a loss exposure?

An insured individual that is likely to intentionally cause a loss in order to collect damages is known as which of the following?

What kind of hazard can be fixed by installing a railing on a walkway?

Something that unequivocally causes a loss is known as which of the following?

An insurable risk must NOT be which of the following?

An insurable risk must have which of the following characteristics?

Which of the following is a risk response discussed in this course?

Besides purchasing professional liability insurance, which of the following is a realistic way to reduce the risk of liability claims?

Which of the following is a way for an employer to reduce the risk of liability claims?

When shopping for Errors and Omissions and Professional liability insurance, which of the following is true?

Liability insurance reduces the loss exposures related to which kind of risks?

The three broad types of liability forms for professionals are which of the following?

Commercial general liability forms do NOT cover which of the following?

Which of the following accurately describes the primary difference between Professional Liability forms and Errors and Omissions forms?

Under a professional liability form, any act or omission arising out of the rendering or failure to render professional services is known as which of the following?

Do Error and Omissions forms cover injuries or damages that can be traced back to employees acting in connection with the insured’s business?

Which of the following is true of an claims-made policy?

The advantages of group insurance policies include which of the following?

The disadvantages of group insurance policies include which of the following?

Which of the following is true of Umbrella liability insurance policies?

Which of the following is true of the liability insurance industry?

The expensive nature of liability insurance will encourage many professionals to focus on which of the following?

Tort reform is one of the most important issues affecting liability insurance for which of the following reasons?

Why do insurance agents need errors and omissions liability insurance?

The majority of lawsuits aimed at insurance agents involve accusations of which of the following?

Who does the insured typically file a lawsuit against if an insurer goes insolvent?

Which of the following is a liability risk faced by insurance agents?

Which of the following is a tactic to help insurance agents reduce liability risks?

Why would an insurance agent want to purchase a personal liability policy when they already have an employer purchased liability policy?

Which of the following is NOT an aspect of a professional discussed in this course?

Why do Error and Omissions and Professional liability forms require such detailed and complete information about a client?

Which of the following is not one of the four areas of responsibility that an agent has in relation to claims processing?

An agent must do which of the following when processing a claim?

Which of the following is true of the Definitions section of an Error and Omissions form?

What is the legal term for the process that allows that insurer to recover damages from a liable party in order to recoup the damages paid to the insured?

Which of the following is a premium discount for liability insurance discussed in this course?

Which section of an Errors and Omissions or Professional liability form states that the insurer will pay for the sums that the insured becomes legally obligated to pay because of damages that arise out of acts, errors, omissions, or negligence?

When it comes to other insurance, Errors and Omissions policies typically do which of the following?

An Inspection and Audit policy condition allows the insurer to do which of the following?

Liability forms do not cover which of the following?

Why would a paramedic purchase individual liability insurance if their employer already has malpractice insurance that protects their company and employees from litigation?