AVMG 5090 TEST 2 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Aviation insurance is sold in what 3 ways?
Answer:
agents, brokers, and direct companies
Question:
2. True
Answer:
(T/F) There is no limitation of liability for your own torts.
Question:
3. Stages of insurance policy creation
Answer:
Insurance company- underwriter- agent -consumer
claims adjuster- consumer or agent
Question:
4. Lienholder's Endorsement
Answer:
when the insurance company will pay the bank the loan balance if something
happens to the aircraft that the insurance company won't insure the plane for,
such as an unqualified pilot flying a plane and crashing it, important when selling
aircraft
Question:
5. True
Answer:
(T/F) The boss has the right to direct their employees but not the independent
contractors.
Question:
6. Lloyd's of London does what
Answer:
writes all insurance plans/forms
,Question:
7. Assumption of Risk
Answer:
_____________ can't be used as a defense against suits brought by injured passengers
because they chose the known risk.
Question:
8. Insurance for workers who are injured on the job.
Answer:
What is Workman's Compensation?
Question:
9. 1st Basic Principle of Insurance
Answer:
Spreading the Risk
Question:
10. exceptions to FTCA of 1946
Answer:
- Claim arises in foreign country
- Combatant activity
- Activity related to military service
- Discretionary activity (opposed to operational activity)
Policy vs actions (ATC mess up)
- Intentional torts
US assumes liability for your torts on the job
Question:
11. If the employee gets injured on the job, then they cannot
hold you liable and sue you for the accident.
Answer:
What is the benefit of having Workman's Compensation for your employees?
Question:
12. - Spread the risk
- Minimize the risk
Answer:
What are the two basic principles of insurance?
, Question:
13. Montreal Convention of 1999
Answer:
Strictly liable for up to 100,000 SDRs for injury or death
Liable for the full economic value unless the airline proves NOT negligent
No punitive damages
Cargo - 17 SDRs/kg
Question:
14. 2nd Basic Principle of Insurance
Answer:
Minimizing the Risk
Question:
15. What is Hull Coverage?
Answer:
damage to the airplane
Question:
16. Special drawing right
Answer:
conversion currency
Question:
17. - Liability = covers your liability for injuries and damage to
others or their property.
- Hull = damage to your own aircraft.
Answer:
What are the types of aircraft insurance coverages and their definitions?
Question:
18. types of hull coverage?
Answer:
- all risk
- all risk/ not in motion
- all risk/ not in flight
AND CORRECT ANSWERS
Question:
1. Aviation insurance is sold in what 3 ways?
Answer:
agents, brokers, and direct companies
Question:
2. True
Answer:
(T/F) There is no limitation of liability for your own torts.
Question:
3. Stages of insurance policy creation
Answer:
Insurance company- underwriter- agent -consumer
claims adjuster- consumer or agent
Question:
4. Lienholder's Endorsement
Answer:
when the insurance company will pay the bank the loan balance if something
happens to the aircraft that the insurance company won't insure the plane for,
such as an unqualified pilot flying a plane and crashing it, important when selling
aircraft
Question:
5. True
Answer:
(T/F) The boss has the right to direct their employees but not the independent
contractors.
Question:
6. Lloyd's of London does what
Answer:
writes all insurance plans/forms
,Question:
7. Assumption of Risk
Answer:
_____________ can't be used as a defense against suits brought by injured passengers
because they chose the known risk.
Question:
8. Insurance for workers who are injured on the job.
Answer:
What is Workman's Compensation?
Question:
9. 1st Basic Principle of Insurance
Answer:
Spreading the Risk
Question:
10. exceptions to FTCA of 1946
Answer:
- Claim arises in foreign country
- Combatant activity
- Activity related to military service
- Discretionary activity (opposed to operational activity)
Policy vs actions (ATC mess up)
- Intentional torts
US assumes liability for your torts on the job
Question:
11. If the employee gets injured on the job, then they cannot
hold you liable and sue you for the accident.
Answer:
What is the benefit of having Workman's Compensation for your employees?
Question:
12. - Spread the risk
- Minimize the risk
Answer:
What are the two basic principles of insurance?
, Question:
13. Montreal Convention of 1999
Answer:
Strictly liable for up to 100,000 SDRs for injury or death
Liable for the full economic value unless the airline proves NOT negligent
No punitive damages
Cargo - 17 SDRs/kg
Question:
14. 2nd Basic Principle of Insurance
Answer:
Minimizing the Risk
Question:
15. What is Hull Coverage?
Answer:
damage to the airplane
Question:
16. Special drawing right
Answer:
conversion currency
Question:
17. - Liability = covers your liability for injuries and damage to
others or their property.
- Hull = damage to your own aircraft.
Answer:
What are the types of aircraft insurance coverages and their definitions?
Question:
18. types of hull coverage?
Answer:
- all risk
- all risk/ not in motion
- all risk/ not in flight
