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AINS Quiz | 713 Questions with 100 % correct answers | Verified& Updated 2024 Graded A+
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AINS Quiz | 713 Questions with 100 % correct answers | Verified& Updated 2024 Graded A+
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AINS Quiz | 713 Questions with 100 % correctanswers | Verified& Updated 2024 Graded A+
Which one of the following is a form of excess liability coverage?
Select one:
A. A maximum-possible-loss policy
B. A coinsurance policy
C. A self-contained policy
D. A primary policy - ✔✔A self-contained policy
An excess policy that applies to a loss that exceeds the underlying policy limits only if the loss
is specifically covered under the terms of the excess policy is known as a - ✔✔Self-contained
policy
*It is subject to only its own terms, so the loss must be specifically covered by the policy
to apply
Which one of the following statements is correct with respect to the exclusions of an
umbrella liability insurance policy? - ✔✔An umbrella policy can use exclusions to broaden
or narrow exclusions found in the underlying policies
,Professional liability and management liability policies differ from the Commercial General
Liability (CGL) Coverage Form in all of the following ways, EXCEPT:
- Claims-made trigger
- Consent to settle
- Exclusions
- Deductibles - ✔✔Exclusions
*Exclusions are in both professional liability policies and the CGL coverage form, so they are
not a way in which the 2 forms differ
All of the following are main types of management liability insurance, EXCEPT:
- Directors and officers liability
- Employment practices liability
- Fiduciary liability
- Insurance agents and brokers errors and omissions (E&O) liability - ✔✔Insurance agents
and brokers errors and omissions (E&O) liability
*These are professional liability, not mgmt liab
Professional liability for professions such as accounting, insurance, law, and engineering is often
called which one of the following? - ✔✔Errors and omissions liability
,Many of the provisions in professional liability policies resemble those found in commercial
general liability policies. However, some of the provisions differ in key ways such as the -
✔✔Use of a claims-made trigger
Fiduciary liability insurance provides coverage for negligence involved in which one of
the following?
Select one:
A. Investment decisions in retirement plans.
B. Violations of licensee duties.
C. Termination of employees.
D. Management of the corporation. - ✔✔A. Investment decisions in retirement plans
Fiduciary liability insurance covers which one of the following? - ✔✔Fiduciaries of
employee benefit plans for breach of fiduciary duties involving discretionary judgments
The human resources vice president of LZ Corporation (LZ) informed Barbara, a new employee,
that she must wait sixty days to enroll in the company health insurance plan. The advice was
incorrect, and Barbara was unable to obtain employer-sponsored health insurance until the next
open enrollment period nine months later. Barbara sues LZ for the extra cost to purchase private
health insurance for the nine-month period. Which one of the following types of insurance would
cover LZ for this claim? - ✔✔Employee benefits liability
Insurance covering an employer against liability claims alleging improper advice in the
administration of a group health program is - ✔✔Employee benefits liability insurance
, Professional liability insurance is usually written on - ✔✔Forms independently developed by
individual insurers
Professional liability insurance is now available for more than just the technical professions.
These occupations range from chemists to veterinarians, all of which entail liability for which
one of the following? - ✔✔Failure to use the degree of skill expected of a person in a
particular field
CGL policies differ from professional liability and management liability policies in how
deductibles are applied. Most professional liability and management liability policies have which
one of the following? - ✔✔Mandatory minimum deductibles
Even when the duty to select investments for an employee benefits plan has been delegated to
others, such as in a mutual fund or brokerage firm, the fiduciaries may be responsible for
which one of the following? - ✔✔The errors or negligence of the investment managers
Mark, a 50-year-old employee of Ajax Company (Ajax), is fired even though his annual
performance reviews have indicated that his work has been outstanding. Mark believes he has
been discriminated against because of his age and sues the directors of Ajax. What type of
insurance policy does Ajax need to provide coverage for this type of lawsuit? -
✔✔Employment practices liability
Which one of the following situations illustrates a professional liability loss exposure?
Select one:
A. An attorney serves on the board of a not-for-profit organization.
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