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2.
Coverage for
claims made against you only while the policy is in force
is provided by:
a.
An
“Occurrence” policy
b.
Annual
aggregate policy
c.
“Claims-Made”
policy
3.
Under which
type of policy does it not matter if the coverage is in effect
at the time the claim is made?
a.
“Occurrence”
b.
“Claims-Made”
c.
“Personal
Injury”
4.
Years 1
through 4 are significantly less expensive with this type of
policy
a.
“Occurrence”
b.
“Claims-Made”
c.
Auto insurance
before your teenager learns to drive
5.
Even if you
cancel your policy at some future date, you will still have
coverage for events that occurred while the policy was in
effect. This is a benefit of which type of policy?
a.
“Claims-Made”
b.
“Life
Insurance”
c.
“Occurrence”
6.
The best
coverage you can buy for any situation is
a.
“Claims-Made”
b.
“neither”
c.
“Occurrence”
7.
You should
only purchase malpractice insurance after consulting with
a.
Your attorney
b.
Your
accountant
c.
Your best
friend
d.
A malpractice
insurance specialist (this question was added to help your test
results!)
8.
To find out
the financial strength of your insurance company:
a.
Ask the
insurance company
b.
Ask a friend
c.
Go to the
library and look it up in Best’s Guide to Insurance Companies.
9.
An insurance
company with superior financial status will receive a Best’s
rating of:
a.
“Excellent”
b.
+10
c.
A
10.
$1,000,000/5,000,000 means:
a.
You are
covered for up to $1,000,000 for each claim against you and also
for up to $5,000,000 for each claim against you.
b.
The most the
carrier will pay out for any one claim is $1,000,000.
c.
The most the
carrier will pay out for any one claim is $5,000,000.
d.
The most the
insurance company will pay out for losses in any one policy year
is $5,000,000.
e.
B and D
11.
Legal costs
included within the limits of liability:
a.
Reduce the
amount of money available to pay for damages.
b.
Has no effect
on the amount of money available for damages.
c.
Increase the
amount of money available to pay for damages.
12.
So that legal
costs do not reduce the limits of liability available to pay for
damages make sure that:
a.
They are in
addition to the Limits of Liability.
b.
They are
within the Limits of Liability.
c.
They are on an
“Occurrence” basis.
13.
If you do
actually become involved in a claim or lawsuit:
a.
Send the
insurance company the original suit papers or other legal
documents you receive immediately.
b.
Send the
insurance company copies of the suit papers or other legal
documents you receive as soon as possible.
c.
Send the
insurance company a summary of what the legal documents say.
14.
“Billing E & O
coverages”
a.
Covers damage
to computers, typewriters and pencils
b.
Tax fraud,
accountant fees, and legal defense
c.
Billing
errors, legal expenses and shadow audits
d.
Covers libel
and slander.
15.
If you suspect
that you have committed a wrongful act which may result in a
claim or suit against you—:
a.
Immediately
notify the insurance carrier.
b.
Assume any
financial obligation or pay out any money without the insurance
company’s prior consent.
c.
Give the names
and addresses of any witnesses and injured people to the
insurance company without permission.
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