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Chapter 16 Quiz
This quiz will test your knowledge on the material presented. Some questions may also test your knowledge on material not yet presented.
his statement is true about a basic extended reporting period of a commercial umbrella liability policy can:
Provide coverage to the insured for occurrences that happen and for claims
Provide coverage to the insured for occurrences that happen after the policy expiration
Provide coverage to the insured for claims reported after the policy expiration
Increase the limits of liability
The verdict was higher than the policy limits in a personal injury liability lawsuit. In this situation:
The insured, the insurance company providing the insured's underlying policy and the company providing the insured’s umbrella policy must agree on an appeal and share the expenses of that appeal.
The case cannot be appealed by any of the parties.
Neither the insured's underlying insurer nor the umbrella insurer may appeal without the insured's agreement.
The insurance company providing the insured's umbrella liability policy can appeal the case at its own expense even if the insured and the company providing the underlying policy do not appeal.
___ payments were made to all of the claimants before the claims were negotiated so that repairs could begin at an early stage. It was also subtracted from the final settlement.
Mr. Jones was given an advance payment on his claim. A final loss report was filed on his claim and it did all of the following EXCEPT:
Subtract the advance payments from the settlement amount
Itemize the advance payments made to a claimant
Return the advance payment receipts to the insured
Document the file for the insurer
During the accident on June 8th involving Mr. Brown at the remodeling site of the home owned by Sharon Davis, Mr. Brown sustained injuries that left him unable to use his left arm. Sharon’s homeowner policy did not cover the injuries and Mr. Brown’s Insurance provided by A to Z Insurance Company covered the medical bills. When A to Z Insurance Company subrogated the rights of Mr. Brown to sue Sharon’s homeowner insurance carrier for the amount of the medical bills, this subrogation is referred to as:
The Tool Factory suffered damage to some newly acquired equipment used on the assembly line at the factory. With an Equipment Breakdown policy, the loss settlement to cover the equipment is:
ACV all of the time
Replacement cost if the repair or replacement is made within 24 months
Replacement cost if the repair or replacement is made within 18 months
Replacement cost all of the time
The delivery truck for Dynamic Mobile Glass Company was parked under a tree in the business parking lot the night when a hail storm hit the area. The wind from the storm knocked over the tree and it fell onto the driver’s side of the truck. The next morning, the trash man didn’t see the truck parked and backed into it after picking up trash from the company dumpster. The owner of Dynamic Mobile, Bob, called his agent to file a claim and was told that his policy was written for liability coverage. Which of the following is correct?
Since the truck was a total loss, Bob could make a written demand for an appraisal method to be used.
The agent and Bob disagreed if the loss was covered, so the appraisal method could not be used.
The agent and Bob disagreed on the amount of damages, so the appraisal method could be used.
The trash man sued Bob for parking the truck in that spot.
A private school has hired a plumbing contractor to repair leaks in the teacher’s lounge on the second floor of the school. The plumber leaves plastic pipes and a wrench in a small storage area. This is called:
Assumption of risk.
Which of the following is not a factor in determining negligence on the part of the insured?
There is a breach of protection
Legal duty is owed
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