Caib 3 - Study guide questions to review

CH1 - 9. The Law - Identify the two ways that both criminal and civil laws are established - Answer- Common law; Statute law CH1 - 16. The Matter of Damages - Identify any three factors that can impact on the amount of compensatory damages - Answer- Financial Circumstances; Reputation; Social Position CH1 - 13. Analyzing Liability Loss Exposures - Identify three instances when a principal would be liable for the acts of an independent contractor - Answer- 1. When the work being contracted is inherently dangerous 2. When injury or damage results from the contractor's use of defective fixtures, machinery or equipment supplied by the principal 3. When the principal controls the manner in which the work is to be done CH1 - 14. Analyzing Liability Loss Exposures - Explain the liability of the building owner for 'single occupancy buildings' and the exception to the rule - Answer- Landlords are not liable to tenants or their customers for injuries caused by the unsafe condition of the premises Exception: If the landlord fails to notify the tenant of any dangerous conditions they were aware of or ought to have been aware of, that existed at the time the lease was made CH1 - 21. Analyzing Liability Loss Exposures - Identify the implied warranty with respect to the products of sellers - Answer- The fitness of a business's products for a particular use CH2 - 6. IBC 2100 - An Analysis - Identify the three terms contained in the definition of Bodily Injury - Answer- 1. Bodily injury 2. Sickness or disease 3. Death CH2 - 7. IBC 2100 - An Analysis - Explain the two key coverages included under the definition of Property Damage - Answer- 1. Physical injury to tangible property, including all resulting loss of use to that property 2. Loss of use of tangible property that is not physically damaged CH2 - 12. IBC 2100 - An Analysis - Define Occurrence - Answer- Means an accident, including continuous or repeated exposure to the same general harmful conditions CH2 - 22. Exclusions - Will the policy generally respond to pay for injuries to employees who are injured in the course of employment - Answer- No CH2 - 2. Exclusions - Define automobile - Answer- Vehicle, trailer, or semitrailer that is required by law to be insured under a contract (liability policy) or any vehicle insured under such contract, including any attached machinery or equipment CH2 - 18. Exclusions - Explain how the broad form completed operations endorsement would change your answer to what is covered or not - Answer- Excludes coverage only for that particular part of the insured's work responsible for the loss and not all of it CH2 - 23. Coverage B - Personal Injury Liability - Identify four activities that constitute an advertising liability exposure and are not covered under this section of the policy - Answer- 1. Advertising 2. Publishing 3. Broadcasting 4. Telecasting CH2 - 5. Coverage C - Medical Payments - Identify four persons excluded under coverage c - Answer- 1. The insured 2. The insured's employees 3. Other persons working on behalf of the insured or tenant of the insured 4. Any person who is practicing, instructing or participating in athletics CH2 - 14. Supplementary Payments - Coverages A, B and D - Identify two kinds of costs addressed under costs taxed against the insured - Answer- 1. Court costs 2. Interest on amount of the judgment CH2 - 15. Supplementary Payments - Coverages A, B and D - Identify when the interest on the amount of judgment is calculated and any restriction as the amount - Answer- When the verdict rendered by the court favours the plaintiff until the insurer has paid. Restricted to the limit of insurance CH2 - 18. Determination of Premium - Identify the factors to be considered when calculating the premium to be charged by the insurer for 'Products liability exposure' - Answer- 1. Type of products sold 2. Sales volume 3. Territories in which products are sold CH2 - 19. Determination of Premium - Identify the factors to be considered when calculating the premium to be charged by the insurer for 'Completed operations exposures' - Answer- 1. Type of work performed 2. Gross receipts