BCN 3740 Legal Aspects in Construction
Exam Questions With Correct Answers
What |does |a |commercial |General |Liability |Policy |cover? |- |CORRECT |ANSWER✔✔-Pays |for |
negligence, |damages |to |other |buildings,
Types |of |Commercial |GL |Policies? |- |CORRECT |ANSWER✔✔-1. |Occurence |Based |Policy
2. |Claim |Based |Policy
Occurrence |based |policy |- |CORRECT |ANSWER✔✔-A |policy |covering |claims |that |arise |out |of |
damage |or |injury |that |took |place |DURING |the |policy |period, |regardless |of |when |claims |are |
made.
Claim |based |policy |- |CORRECT |ANSWER✔✔-You |are |covered |when |you |have |the |policy |for |that
|period |of |time... |ie.... |you |have |the |policy |from |2017-2018. |If |a |claim |is |made |while |you |have |
the |policy |you |are |good, |but |if |a |claim |is |made |in |2019 |and |you |do |not |have |tail |coverage |
then |you're |up |the |creek. |Even |if |the |incident |occured |in |2017-2018.
Parts |of |a |Policy |- |CORRECT |ANSWER✔✔-1. |First |part: |What |the |policy |covers
2. |Second |part: |Exclusions
3. |Third |part: |Endorsements |(Exception |to |an |exception). |e.g. |we |cover |everything, |except |
condos, |except |if |they |are |over |10 |stories |high.
Workmans |Compensation |- |CORRECT |ANSWER✔✔-covers |injuries |to |employees |while |on |the |
job.
Who |qualifies |for |a |workers |comp |exemption? |- |CORRECT |ANSWER✔✔-only |officers |of |the |
company |registered |under |sunbiz.
,Builder's |Risk |Insurance |- |CORRECT |ANSWER✔✔-Construction |insurance |that |provides |
coverage |specifically |for |a |project |DURING |construction |process. |This |includes |modifications |to
|an |existing |structure, |but |only |during |construction |process. |e.g. |weather, |fire, |vandalism, |or |
theft.
Errors |and |Omissions |Insurance |- |CORRECT |ANSWER✔✔-Insurance |which |financially |protects |
professionals |(e.g. |engineers, |architects) |against |claims |for |damages |resulting |from |design |
errors. |It's |a |reducing |policy, |goes |down |with |amount |spent |in |litigation.
OCIP |- |CORRECT |ANSWER✔✔-Owner |Controlled |Insurance |Program
CCIP |- |CORRECT |ANSWER✔✔-Contractor |Controlled |Insurance |Program
What |is |an |OCIP |- |CORRECT |ANSWER✔✔-insurance |policy |that |covers |major |players |e.g. |GC |
and |subs. |Lower |cost |of |insurance |for |contractors. |People |inside |this |policy |can't |sue |each |
other, |OCIP |doesnt |cover |that.
Conditional |Payment |Language |- |CORRECT |ANSWER✔✔-Subs |dont |get |paid |until |GC |gets |paid.
|Reduces |risk |of |owner |not |paying.
Damages |for |Delay |Clause |- |CORRECT |ANSWER✔✔-If |project |delayed |by |sub, |GC |can |sue |for |
the |cost |of |those |delays.
No |Damages |for |Delay |clause |- |CORRECT |ANSWER✔✔-If |GC |delays |project, |the |sub |can't |sue.
Indemnification |Clause |- |CORRECT |ANSWER✔✔-sub |has |to |indemnify |GC |for |sub |or |GC's |
negligence. |If |GC |gets |sued |for |negligence |of |GC |or |sub, |sub |has |to |protect |GC |in |court. |Even |if
|mistake |was |by |GC, |owner |or |architects.
, Rescitation |of |Familiarity |- |CORRECT |ANSWER✔✔-If |project |is |not |buildable, |it |contractors |
fault |and |not |owner's |fault. |e.g. |finding |ruins |underneath |building |area |that |makes |area |
unbuildable.
Corporations |- |CORRECT |ANSWER✔✔-has |shareholders, |limited |by |their |assets,
Limited |Partnerships |- |CORRECT |ANSWER✔✔-Each |partnership |is |responsible |for |the |part |of |
their |share |of |the |company.
LLC |- |CORRECT |ANSWER✔✔-Limited |Liability |Company |- |Has |members, |assets |limited |to |what |
the |company |owns. |Cant |sue |owners |personally |for |their |belongings.
Joint |Venture |- |CORRECT |ANSWER✔✔-two |corporations |working |on |a |particular |project, |
sometimes |because |risk |is |too |high |for |one |company. |Sign |with |your |name |and |name |of |
company |with |your |position |to |ensure |you |arent |liable.
Transfer |of |assets |- |CORRECT |ANSWER✔✔-A |way |of |reducing |liability |by |transferring |your |
assets |to |a |significant |other. |When |sued |personally, |these |assets |can't |be |pursued.
Joint |check |agreement |- |CORRECT |ANSWER✔✔-GC |and |sub |have |to |sign |check |before |its |
cashed |in. |Limits |liability |of |sub |not |getting |paid |by |GC.
Licensing |- |Reciprocity |Agreement |between |counties |- |CORRECT |ANSWER✔✔-If |registered |in |
Broward, |reciprocity |granted |by |Miami-Dade |county.
Can |a |state |license |apply |to |be |a |building |inspector |in |all |counties? |- |CORRECT |ANSWER✔✔-
No. |Not |in |some |county's
Div |1 |- |CORRECT |ANSWER✔✔-State |Level |Contractor |- |building |is |limited |to |3 |stories, |
residential |to |houses.
Exam Questions With Correct Answers
What |does |a |commercial |General |Liability |Policy |cover? |- |CORRECT |ANSWER✔✔-Pays |for |
negligence, |damages |to |other |buildings,
Types |of |Commercial |GL |Policies? |- |CORRECT |ANSWER✔✔-1. |Occurence |Based |Policy
2. |Claim |Based |Policy
Occurrence |based |policy |- |CORRECT |ANSWER✔✔-A |policy |covering |claims |that |arise |out |of |
damage |or |injury |that |took |place |DURING |the |policy |period, |regardless |of |when |claims |are |
made.
Claim |based |policy |- |CORRECT |ANSWER✔✔-You |are |covered |when |you |have |the |policy |for |that
|period |of |time... |ie.... |you |have |the |policy |from |2017-2018. |If |a |claim |is |made |while |you |have |
the |policy |you |are |good, |but |if |a |claim |is |made |in |2019 |and |you |do |not |have |tail |coverage |
then |you're |up |the |creek. |Even |if |the |incident |occured |in |2017-2018.
Parts |of |a |Policy |- |CORRECT |ANSWER✔✔-1. |First |part: |What |the |policy |covers
2. |Second |part: |Exclusions
3. |Third |part: |Endorsements |(Exception |to |an |exception). |e.g. |we |cover |everything, |except |
condos, |except |if |they |are |over |10 |stories |high.
Workmans |Compensation |- |CORRECT |ANSWER✔✔-covers |injuries |to |employees |while |on |the |
job.
Who |qualifies |for |a |workers |comp |exemption? |- |CORRECT |ANSWER✔✔-only |officers |of |the |
company |registered |under |sunbiz.
,Builder's |Risk |Insurance |- |CORRECT |ANSWER✔✔-Construction |insurance |that |provides |
coverage |specifically |for |a |project |DURING |construction |process. |This |includes |modifications |to
|an |existing |structure, |but |only |during |construction |process. |e.g. |weather, |fire, |vandalism, |or |
theft.
Errors |and |Omissions |Insurance |- |CORRECT |ANSWER✔✔-Insurance |which |financially |protects |
professionals |(e.g. |engineers, |architects) |against |claims |for |damages |resulting |from |design |
errors. |It's |a |reducing |policy, |goes |down |with |amount |spent |in |litigation.
OCIP |- |CORRECT |ANSWER✔✔-Owner |Controlled |Insurance |Program
CCIP |- |CORRECT |ANSWER✔✔-Contractor |Controlled |Insurance |Program
What |is |an |OCIP |- |CORRECT |ANSWER✔✔-insurance |policy |that |covers |major |players |e.g. |GC |
and |subs. |Lower |cost |of |insurance |for |contractors. |People |inside |this |policy |can't |sue |each |
other, |OCIP |doesnt |cover |that.
Conditional |Payment |Language |- |CORRECT |ANSWER✔✔-Subs |dont |get |paid |until |GC |gets |paid.
|Reduces |risk |of |owner |not |paying.
Damages |for |Delay |Clause |- |CORRECT |ANSWER✔✔-If |project |delayed |by |sub, |GC |can |sue |for |
the |cost |of |those |delays.
No |Damages |for |Delay |clause |- |CORRECT |ANSWER✔✔-If |GC |delays |project, |the |sub |can't |sue.
Indemnification |Clause |- |CORRECT |ANSWER✔✔-sub |has |to |indemnify |GC |for |sub |or |GC's |
negligence. |If |GC |gets |sued |for |negligence |of |GC |or |sub, |sub |has |to |protect |GC |in |court. |Even |if
|mistake |was |by |GC, |owner |or |architects.
, Rescitation |of |Familiarity |- |CORRECT |ANSWER✔✔-If |project |is |not |buildable, |it |contractors |
fault |and |not |owner's |fault. |e.g. |finding |ruins |underneath |building |area |that |makes |area |
unbuildable.
Corporations |- |CORRECT |ANSWER✔✔-has |shareholders, |limited |by |their |assets,
Limited |Partnerships |- |CORRECT |ANSWER✔✔-Each |partnership |is |responsible |for |the |part |of |
their |share |of |the |company.
LLC |- |CORRECT |ANSWER✔✔-Limited |Liability |Company |- |Has |members, |assets |limited |to |what |
the |company |owns. |Cant |sue |owners |personally |for |their |belongings.
Joint |Venture |- |CORRECT |ANSWER✔✔-two |corporations |working |on |a |particular |project, |
sometimes |because |risk |is |too |high |for |one |company. |Sign |with |your |name |and |name |of |
company |with |your |position |to |ensure |you |arent |liable.
Transfer |of |assets |- |CORRECT |ANSWER✔✔-A |way |of |reducing |liability |by |transferring |your |
assets |to |a |significant |other. |When |sued |personally, |these |assets |can't |be |pursued.
Joint |check |agreement |- |CORRECT |ANSWER✔✔-GC |and |sub |have |to |sign |check |before |its |
cashed |in. |Limits |liability |of |sub |not |getting |paid |by |GC.
Licensing |- |Reciprocity |Agreement |between |counties |- |CORRECT |ANSWER✔✔-If |registered |in |
Broward, |reciprocity |granted |by |Miami-Dade |county.
Can |a |state |license |apply |to |be |a |building |inspector |in |all |counties? |- |CORRECT |ANSWER✔✔-
No. |Not |in |some |county's
Div |1 |- |CORRECT |ANSWER✔✔-State |Level |Contractor |- |building |is |limited |to |3 |stories, |
residential |to |houses.
