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11/8/2024 12:08 PM
RPLU 11 Employment Practice Liability
Exam Questions And Answers 100% Pass
Affirmative Action - answer✔The proactive measures an employer takes to recruit, employ and advance
protected classes of employees
Affirmative Defense - answer✔An explanation for a defendant' actions that justifies the defendant's
behavior and provides an effective defense
Age Discrimination in Employment Act ADEA - answer✔A federal statute that protects people age 40
and above from employers' discriminatory practices based on their age; Prohibits discrimination in
hiring, firing, recruitment, promotion, pay, benefits, conditions; Prohibits retaliation; Applies to
employers with 20+ employees; Possible relief/potential damages are Hiring, reinstatement, promotion,
Back pay, Front pay, Attorneys' fees, Injuctive relief, Compensatory and punitive damages; Enforced
EEOC
Aggregate Limit - answer✔The maximum amount the insurer will pay within a specific policy period for
all of the claims incurred under an insurance policy
Alternative Dispute Resolution ADR - answer✔The methods, including mediation and arbitration, of
settling disputes by means other than court trial that are typically less costly and more expeditious than
the litigation process
Americans with Disabilities Act ADA - answer✔A federal statute that protects disabled (physical or
mental) individuals from employment discrimination and requires employers to offer reasonable
accommodations to employees with disabilities; Prohibits discrimination in hiring, firing, recruitment,
promotion, pay, benefits, conditions; Prohibits retaliation; Applies to employers with 15+ employees for
20 weeks in current or preceding year; Strict liability, no proof of discrimination or negligence required;
Possible relief/potential damages are Hiring, reinstatement, promotion, Back pay, Front pay, Attorneys'
fees, Injunctive relief, Liquidated damages; Enforced by EECO
Arbitration - answer✔A method of alternative dispute resolution that allows the disputing parties to
present arguments and evidence to an independent and impartial third party (arbitrator) whose decision
is usually binding
Baby Boomers - answer✔Those individuals born during the post-WWII period of increased birth rates
starting in 1946 and ending in 1964
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Back Pay - answer✔The monetary relief to reimburse wages and/or benefits lost as a result of unlawful
discrimination or wrongful termination;; Wages the employee would have earned but for the unlawful
treatment by the employer minus any amount the employee was able to earn in the interim
Base Rate - answer✔The rate per unit of insurance that is based on criteria specific to a particular line of
coverage and that is a component of a PLI rating plan used to determine PLI premiums, before
premiums are adjusted for the limit of liability and other considerations
Bona Fide Occupational Qualification BFOQ - answer✔A job requirement that permits an employer to
discriminate legally based on sex, age, religion, national origin, or physical or mental condition - The
requirement must be carefully justified and based on actual job needs not stereotypes
Claims Made - answer✔A form of liability coverage that is triggered if (1) an event occurs after the
retroactive date but before the termination of coverage and (2) the claim is made against the insured
while the policy is in effect
Claims Made and Reported - answer✔A form of liability coverage that requires that the claim not only
be made but also reported to the insurer during the same policy period
Class Action - answer✔A lawsuit that authorizes a single person or small group of people to represent
the interests of a larger group
Collective Bargaining Agreement - answer✔An employment agreement entered into by an employer
with a group of employees
Commercial General Liability Insurance CGL - answer✔A type of insurance that provides coverage for
commercial risks for losses arising out of business operations involving bodily injury and property
damage, except those specifically excluded, including professional services - Note May also include
advertising injury/personal injury coverage
Common Law - answer✔The body of law established by the courts in earlier cases (precedents) rather
than statutory law written by a legislature - Also called case law
Compensatory Damages - answer✔The costs that are awarded to claimants for losses they incurred and
that include both special damages (specific, out-of-pocket costs) and general damages (costs for pain
and suffering) - Note Caps may limit the amount payable
Conciliation - answer✔The efforts by a third party to improve the relationship between two or more
disputants
Consent to Settle - answer✔A policy provision that requires the insurer to obtain the insured's consent
before offering to settle claims made under a duty to defend policy - Note In a duty to pay policy, the
insured must obtain the insurer's consent before entering into any settlement
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Constructive Discharge - answer✔A type of termination of the employment relationship in which the
employee quits, but the employer is liable as if wrongful termination occurred because the employee
was forced to resign due to intolerable working conditions
Deductible - answer✔The portion of a loss that the insured must bear and that may apply to the
indemnity payment, defense costs, or both - Note The insurer typically pays the loss and then collects
the deductible from the insured
Defense within Limits - answer✔The policy provision indicating that any legal defense costs the insurer
incurs in defending the insured against a claim under the policy will be deducted from and reduce the
policy's coverage limits
Directors and Officers Liability Insurance (D&O) - answer✔The insurance coverage that protects the
directors and officers of corporations, and sometime the entity, against legal judgments, settlements,
and related expenses resulting from allegations of wrongful acts of directors and officers committed in
their individual capacities
Discrimination - answer✔The unfair treatment or denial of opportunity or privilege because of an
individual's race, age, sex, nationality, religion, disability, citizenship, or other protected class
Disparate Impact - answer✔A category of employment discrimination in which an employer's actions,
practices, or standards, although seemingly neutral, had an adverse effect on the employment
opportunities of a protected class - Note Intent to discriminate is not necessary for this type of
employment discrimination to ccur
Disparate Treatment - answer✔The intentional discrimination in employment against an individual or
group in a protected class - Note An intent to discriminate is a necessary element in this type of
employment discrimination and may be shown by direct evidence or inferentially by statistical,
anecdotal, and/or comparative evidence
Dual-Filing - answer✔A working agreement under which a charge of discrimination that is (1) covered by
both an EEOC-enforced statute and an FEPA law or ordinance and (2) filed with either the EEOC or FEPA
is filed with both agencies under both laws regardless of which agency receives it
Employment Benefits Liability Insurance (EBL) - answer✔A type of insurance covering negligent or
unintentional errors and omissions that occur in the course of administering employee benefit plans and
that is usually written as an endosrement to a CGL polciy
Employment At-Will - answer✔An employment relationship in which, in the absence of an express
agreement to the contrary, either the employee or the employer may terminate the employment
relationship at any time for any reason
Equal Opportunity Employment Commission EEOC - answer✔The federal administrative agency that
enforces laws prohibiting discrimination in employment
