RPLU 18 - Exam Questions And Answers Already Graded A+
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Course
RPLU 18
Institution
RPLU 18
What factors regarding Territory affect UW rates, and why? - ️️* Some states are
more litigious since individuals may be more likely to sue * Courts in states may have
set precedents making it easier to collect from design firms * Location of home office
determines the state rate * Need addi...
RPLU 18 - Exam questions
What factors regarding Territory affect UW rates, and why? - ✔️✔️* Some states are
more litigious since individuals may be more likely to sue * Courts in states may have
set precedents making it easier to collect from design firms * Location of home office
determines the state rate * Need additional licenses to practice in other states * Coastal
regions are issues * California, Florida, and New Jersey are tough and may pay more
for E&O insurance
What were some of the key findings of the Ames & Gough Survey? - ✔️✔️* Premiums
are trending upward but remain modest * Recent claims experience (2 years) * Types of
projects * 50% cited higher claim severity with the majority paying a claim of $1 million
or more * Only 7% cited higher claim frequency * Claims experience is improving *
Firms need to stay active in claim/risk management
What does a limitation of liability clause do? - ✔️✔️Allocates potential liability between
contractual parties. * Also includes a maximum dollar amount of liability
What is the difference between Mediation & Arbitration? - ✔️✔️Mediation is less formal
and non-binding, whereas Arbitration is sometimes required, more formal, and can be
binding.
Who is covered under a policy? - ✔️✔️1) Named Insured/Policyholder 2) Active officers
or employees of Named Insured 3) Retired/former officers or employees 4) Leased
employees 5) Spouses/executors of insureds
* Note that it must be within the scope of duty * Subcontractors are not covered
(Vicariously liable)
What are the roles of a claims professional? - ✔️✔️1) Investigate claims 2) Determine
if losses are covered by the policy 3) Establish case reserves 4) Manage litigation 5)
Settle claims * Do not defend against claims
What are some advantages of a project policy? - ✔️✔️* Cover all claims arising from a
project * Effective for the entire construction period * Effective for a run-off period *
Higher limits are available * Covers anyone who works on a project
What are the differences between payment and performance bonds? - ✔️✔️Payment
bonds ensure subcontractors will be properly paid, whereas Performance bonds ensure
a project is completed timely and in accordance with the contract
, What are supplemental payments? - ✔️✔️An insurer promises to pay for certain
additional costs in addition to damages covered within limits of liability. * Do not affect
policy limits and do not exhaust limits
What can invoke coverage under a Design Professional policy? - ✔️✔️Reporting an
incident that is reasonably expected to result in a claim. (Potential claim event)
Which of the following is not a requirement of an Architect? A) Bachelor's in Architecture
B) Masters in Architecture or lengthy internship C) Architects Principles & Practice
examination D) Architect Registration examination - ✔️✔️Architects Principles &
Practice examination
Why do design professionals buy insurance? - ✔️✔️Many contracts require it be
purchased
What factors develop a sound defense in a design malpractice claim? - ✔️✔️* Statute
of limitations * Statutes of Repose * Economic loss doctrine * Contractual defenses
What are some common endorsements to E&O policies for design professionals? -
✔️✔️* First dollar defense * Defense outside the limits * Waiver of subrogation *
Specific project/client excess limits
A Notice of a Potential Claim must include? - ✔️✔️* What happened * What service
was performed * What possible injury/damage may have occurred * How the
circumstance occurred * When the insured first became aware
What are the five most relevant exclusions to E&O polices for design professionals? -
✔️✔️* Contractual liability & warranty or guarantee * Faulty workmanship * Goods or
products * Related entity * Insured vs. Insured
When can a claim first arise? - ✔️✔️* From a written monetary demand * From a
written or oral monetary demand * From a known incident or probable claim event
What are some high-risk project types? - ✔️✔️* Condominiums/Apartments * Bridges *
Pools * Amusement Rides * Mass transit * Subdivisions
What are some low-risk design disciplines? - ✔️✔️* Mechanical engineering * Land
Surveying * Electrical engineering * Interior design * Landscape architecture
What are some high-risk design disciplines? - ✔️✔️* Architecture * Geotechnical/soil
engineering * Structural engineering
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