FINALEXAMMULTIPLECHOICEQUESTIONSAUTUMN2008BOLDANSWERS

FINALEXAMMULTIPLECHOICEQUESTIONSAUTUMN2008BOLDANSWERS - BF...

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BF 640 AUTUMN 2008 FINAL MULTIPLE CHOICE EXAM INSTRUCTOR: CHARLES A. BRYAN NAME: _____________________________________________________________ Place your answer on the answer sheet and turn the answer sheet in. You may keep the exam. Answers will be posted on Carmen within three days. 1. Risk can be defined as a. Uncertainty concerning loss b. Certainty regarding loss c. Uncertainty regarding financial gain d. The cause of loss 2. When an insurer sues a negligent third party to recover a loss paid to an insured, the company is exercising its right of a. Assignment b. Subrogation c. Estoppel d. Insurable interest 3. Mr. And Mrs. Smith agreed that they needed home insurance. Each approached a different agent and company and purchased the following insurance: Mr. Smith $300,000 and Mrs. Smith $400,000. They later suffered a loss of $70,000 from a fire. How much will Mrs. Smith’s insurer pay? a. $30,000 b. $40,000 c. $70,000 d. $400,000 4. A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of: a. General damages b. Comparative negligence c. Intentional tort d. Strict liability 5. Nancy was injured when she drove her car through a stop sign and was struck by Philip’s car; Philip saw Nancy and could have stopped. However, he failed to do so since he had the right of way. Nancy can recover damages from Philip under which of the following legal doctrines? a. Vicarious liability b. Last clear chance rule c. Contributory negligence d. Assumption of risk doctrine
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6. James was severely injured in an automobile accident. In payment for his pain, suffering, and disfigurement, losses which cannot be specifically itemized, James will receive a. Punitive damages b. Special damages c. Imputed damages d. General damages 7. An insured owns a commercial building with a $100,000 value. He takes out an insurance policy for $60,000 with an 80% coinsurance clause and later suffers a $12,000 loss. He will be paid a. $7,200 b. $9,000 c. $9,600 d. $12,000 8. Under a property insurance policy the insured receives what type of payment that considers physical depreciation a. Replacement cost b. Market value c. Actual cash value d. Appraised value 9. In a pure comparative negligence state, if a person suffers $50,000 in injuries but is 40% responsible due to his behavior, the maximum amount that person can recover is a. $30,000 b. $40,000 c. $50,000 d. None of the above 10. For an event to qualify as an occurrence under a liability policy, which of the following must be true: a. It must have been expected by the claimant b. It must not have been expected or intended from the insured’s standpoint c. It must be unexpected and unintended from the claimant’s standpoint d. It must have occurred while the insured was not present
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11. What is the primary purpose of workers compensation a. To provide compensation to employees for injuries arising out of and in the course of employment b.
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FINALEXAMMULTIPLECHOICEQUESTIONSAUTUMN2008BOLDANSWERS - BF...

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