©THEBRIGHT EXAM SOLUTIONS
11/8/2024 12:08 PM
RPLU Module 3 Exam Questions And
Answers 100% Pass
Errors and Omissions Insurance - answer✔-provides coverage for liability that arises from the alleged
negligence (i.e. error or omission) in the course of rendering a professional service
-Categories Include: Medical Professional Liability, Non-Medical Professional Liability, and Miscellaneous
E&O
Medical Professional Liability Insurance - answer✔Provides coverage for liability that may arise from the
rendering of professional medical services
Non-Medical Professional Liability Insurance - answer✔-Provides coverage for liabilities that may arise
from other types of professional services rendered by non-medical professionals who have formal
training
-Ex. lawyers, accountants, architects, engineers, data privacy/security personnel, and media/design
professionals
Miscellaneous E&O Insurance - answer✔-aka Miscellaneous PLI
-provides coverage for liability that may arise from E&O of numerous categories of non-traditional
professionals
-Ex. Travel agents and consultants
Directors and Officers Insurance - answer✔-Provides coverage for directors and officers for liability that
may arise fro claims/suits filed by shareholders, regulators, employees, and others.
-In some instances, even the company they work for can sue the board for mismanagement
Fiduciary Liability Insurance - answer✔-Provides coverage for liability that may arise from claims filed by
employees and beneficiaries of benefit planes (ex. retirement) for breaches of fiduciary duties owed to
plan participants
Employment Practices Liability Insurance - answer✔-Provides Coverage for liability that may arise from
claims filed by employees, applicants for employment, or even third parties (i.e. vendors) related to
various employment-related actions like harassment and discrimination
, ©THEBRIGHT EXAM SOLUTIONS
11/8/2024 12:08 PM
Professional Liability exists when... - answer✔-one is legally responsible for an injury/loss suffered by
another due to the responsible party's negligence
-the responsible party has a duty to the claimant & negligence was the proximate cause of loss
Wrongful Acts - answer✔-actual or alleged error/omission
-negligence or failure to provide service
-breach of duty
-misleading statement
-others relating to professional service (defined in policy for each type of coverage)
Is proof required to receive a PL defense? - answer✔No. Policies typically cover alleged wrongful acts as
well.
What are the sources of liability? - answer✔Statutory violation, Contractual breach, or Negligence
Statutory Violation - answer✔violating state or federal law
Negligence - answer✔failure to exercise standard of care
How do PL Policies handle Contractual Liability? - answer✔-Most policies do not cover due to financial
guarantees. However, there is an exception (usually) if liability would still be there if the contract didn't
exist
How do you prove negligence for contractual liability? - answer✔Plaintiff must prove:
1. That the contract existed
2. Contract was breached
3. Plaintiff suffered injury or damage
4. Damages were caused by breach of contract
How do you prove Professional Negligence? - answer✔Must prove the following:
1. Duty - legal duty must exist to maintain a certain standard of care (i.e. trained professionals held to a
higher standard)
2. Breach of Duty - failure to conform to standard of care
3. Injury or Damages - plaintiff must have suffered one of these
4. Causation - Injury or Damages were caused by breach of duty
Expert Witness - answer✔Someone called on in a negligence lawsuit to assist in establishing whether
the professional met the applicable standard of care
, ©THEBRIGHT EXAM SOLUTIONS
11/8/2024 12:08 PM
What does a professional standard of care require? - answer✔Requires that professionals exercise the
degree of care of reasonable members of their profession with similar skills and in similar circumstances.
What liability does a professional incur for an error in professional judgement? - answer✔Professionals
will not be held liable for errors in professional judgement if they have met the appropriate standard of
care
What are the four sources from which professional standards are derived? - answer✔-statutes and
regulations
-codes of professional conduct and ethics
-customary practices
-areas of specialization
How does standard care develop and vary? - answer✔-mostly develops through case law
-varies by jurisdiction due to some using federal and others using local standards of care
-professionals can be held liable for the actions of those they supervise and control
Statutes and Regulations - answer✔-play a major roll in standard of care
-include licensing and accredidation
-can broaden the scope of liability (i.e. Sarbanes-Oxly Act of 2002 or HIPAA)
Codes of Professional Conduct and Ethics - answer✔-set by each profession
-usually refers to confidentiality, conflicts of interest, and professional behavior and demeanor
What are the sections of a PLI Policy? - answer✔-Dec Page
-Coverage Form (i.e. insuring agreement, insureds, limits, exclusions, definitions, and conditions)
-Endorsements, Amendments, and Additional Exclusions
What is the best way to determine if something is covered? - answer✔Check the policy's definition of
wrongful acts and then see if there are any modifications to the definition elsewhere in the policy
Scope of Coverage - answer✔The range of exposures that a policy will cover, likely listed somewhere in
the policy. Can be broad and varied for some risks.
What are some other things to consider when looking at a PLI policy? - answer✔1. Coverage for Prior
Acts
2. No coverage for future wrongful acts
3. Coverage for outside activities
11/8/2024 12:08 PM
RPLU Module 3 Exam Questions And
Answers 100% Pass
Errors and Omissions Insurance - answer✔-provides coverage for liability that arises from the alleged
negligence (i.e. error or omission) in the course of rendering a professional service
-Categories Include: Medical Professional Liability, Non-Medical Professional Liability, and Miscellaneous
E&O
Medical Professional Liability Insurance - answer✔Provides coverage for liability that may arise from the
rendering of professional medical services
Non-Medical Professional Liability Insurance - answer✔-Provides coverage for liabilities that may arise
from other types of professional services rendered by non-medical professionals who have formal
training
-Ex. lawyers, accountants, architects, engineers, data privacy/security personnel, and media/design
professionals
Miscellaneous E&O Insurance - answer✔-aka Miscellaneous PLI
-provides coverage for liability that may arise from E&O of numerous categories of non-traditional
professionals
-Ex. Travel agents and consultants
Directors and Officers Insurance - answer✔-Provides coverage for directors and officers for liability that
may arise fro claims/suits filed by shareholders, regulators, employees, and others.
-In some instances, even the company they work for can sue the board for mismanagement
Fiduciary Liability Insurance - answer✔-Provides coverage for liability that may arise from claims filed by
employees and beneficiaries of benefit planes (ex. retirement) for breaches of fiduciary duties owed to
plan participants
Employment Practices Liability Insurance - answer✔-Provides Coverage for liability that may arise from
claims filed by employees, applicants for employment, or even third parties (i.e. vendors) related to
various employment-related actions like harassment and discrimination
, ©THEBRIGHT EXAM SOLUTIONS
11/8/2024 12:08 PM
Professional Liability exists when... - answer✔-one is legally responsible for an injury/loss suffered by
another due to the responsible party's negligence
-the responsible party has a duty to the claimant & negligence was the proximate cause of loss
Wrongful Acts - answer✔-actual or alleged error/omission
-negligence or failure to provide service
-breach of duty
-misleading statement
-others relating to professional service (defined in policy for each type of coverage)
Is proof required to receive a PL defense? - answer✔No. Policies typically cover alleged wrongful acts as
well.
What are the sources of liability? - answer✔Statutory violation, Contractual breach, or Negligence
Statutory Violation - answer✔violating state or federal law
Negligence - answer✔failure to exercise standard of care
How do PL Policies handle Contractual Liability? - answer✔-Most policies do not cover due to financial
guarantees. However, there is an exception (usually) if liability would still be there if the contract didn't
exist
How do you prove negligence for contractual liability? - answer✔Plaintiff must prove:
1. That the contract existed
2. Contract was breached
3. Plaintiff suffered injury or damage
4. Damages were caused by breach of contract
How do you prove Professional Negligence? - answer✔Must prove the following:
1. Duty - legal duty must exist to maintain a certain standard of care (i.e. trained professionals held to a
higher standard)
2. Breach of Duty - failure to conform to standard of care
3. Injury or Damages - plaintiff must have suffered one of these
4. Causation - Injury or Damages were caused by breach of duty
Expert Witness - answer✔Someone called on in a negligence lawsuit to assist in establishing whether
the professional met the applicable standard of care
, ©THEBRIGHT EXAM SOLUTIONS
11/8/2024 12:08 PM
What does a professional standard of care require? - answer✔Requires that professionals exercise the
degree of care of reasonable members of their profession with similar skills and in similar circumstances.
What liability does a professional incur for an error in professional judgement? - answer✔Professionals
will not be held liable for errors in professional judgement if they have met the appropriate standard of
care
What are the four sources from which professional standards are derived? - answer✔-statutes and
regulations
-codes of professional conduct and ethics
-customary practices
-areas of specialization
How does standard care develop and vary? - answer✔-mostly develops through case law
-varies by jurisdiction due to some using federal and others using local standards of care
-professionals can be held liable for the actions of those they supervise and control
Statutes and Regulations - answer✔-play a major roll in standard of care
-include licensing and accredidation
-can broaden the scope of liability (i.e. Sarbanes-Oxly Act of 2002 or HIPAA)
Codes of Professional Conduct and Ethics - answer✔-set by each profession
-usually refers to confidentiality, conflicts of interest, and professional behavior and demeanor
What are the sections of a PLI Policy? - answer✔-Dec Page
-Coverage Form (i.e. insuring agreement, insureds, limits, exclusions, definitions, and conditions)
-Endorsements, Amendments, and Additional Exclusions
What is the best way to determine if something is covered? - answer✔Check the policy's definition of
wrongful acts and then see if there are any modifications to the definition elsewhere in the policy
Scope of Coverage - answer✔The range of exposures that a policy will cover, likely listed somewhere in
the policy. Can be broad and varied for some risks.
What are some other things to consider when looking at a PLI policy? - answer✔1. Coverage for Prior
Acts
2. No coverage for future wrongful acts
3. Coverage for outside activities
