NASCLA Chapter 4 question n answers graded A+ 2023

NASCLA Chapter 4Risk management - correct answer Involves assessing all areas of your business from operations to administrative functions. Benefits of good risk management lowers business and liability insurance, reduces risk of being sued, improves chances of prevailing in a lawsuit. Ways to reduce risk - correct answer Provisions added to contracts, safety programs or operating procedures, insurance coverage and bonding. Insurance - correct answer A protective measure in which coverage is obtained for a specific risk (or set of risks)through a contract. One person indemnifies another against specified loss in return for premiums paid. Indemnity - correct answer A way to transfer risk and exemption from loss incurred by any course of action. (Insurance payout) Bond - correct answer Provide protection in the event contractual obligations are not met. Should contain total dollar amt, length of bond, requirements for notice of defect or lack of maintenance and bond enforcement. Business must be established, profitable, and well managed to qualify for a bond. Bond claims - correct answer Claim filing process is outlined in the bond language for common law (private construction) and in the government statutes for statutory/surety (public) Laws covering bonding of Federal Construction Projects - correct answer Miller Act and Construction Industry payment protection act of 1999