Casualty 1 Commercial Insurance Practice Test Questions and Answers

Premises Liability Arises out of injury or property damage because of the ownership, maintenance, or use of specific location. Operations Liability Arises out of exposures that typically occur away from the premises of the business. Products Liability Caused by defects in product design, manufacturing, or the failure to sufficiently warn or explain the safe use of the product to consumers. Environmental Impairment Liability Occurs when the operations or products of a business creates pollutants that may cause harm. Bailee Liability Exists as a direct result of possessing another persons property Name the four elements that must be present in order for negligence to occur. 1. A duty owed to others 2. A breach of that duty owed 3. Injury of or damages 4. A proximate cause between the breach of duty and the damages. A business keeps a tiger in a cage on their property as a customer attraction. One day the tiger escapes its cage and injures several people. Even though the store owner followed the safety regulations for dangerous animals, he could still be held liable. What type of legal liability is this? This situation represents strict/absolute liability. As the tiger an inherently dangerous activity or exposure. Strict liability can be imposed regardless of the degree of negligence or care exercised by the owner. Operations Liability is caused by ongoing activities such as construction, processing,, or servicing things on someone else's property. Vicarious Liability The relationship that exists between and employer/employee, or between an owner/contractor presents a form. Products Liability is caused by defects in product design, manufacturing, or the failure to sufficiently warn or explain the safe use of the product to consumers. Premises liability A retail stores mannequin falling onto a customer would be a good example