Logan has a fully paid insurance policy that covers liability and physical damage for
his vehicle. Logan lends this vehicle to a neighbor who has an accident and is found
legally liable. There were injuries to the not-at-fault driver and damage to that vehicle
as well. In this case, which one of the following is considered to be third-party to the
automobile insurance policy?
Give this one a try later!
Only the accident victim
George left his camera at the repair shop to be fixed. An unknown arsonist burned the
shop to the ground, destroying George's camera. The fire marshal found no fault with
any of the repair shop's fire protection practices and systems. Under the
circumstances,
Give this one a try later!
, The bailee is not responsible for the destruction of the camera.
Maria is an insurance agent who represents Three Hills Insurance. By agreement
between the two parties, Maria has the authority to bind up to $1 million in property
coverage on businesses that fall within specific territories and classes of business.
However, Maria does occasionally bind coverage limits that are 5-10% above her
authority level. Which one of the following duties to the insurer has Maria breached?
Give this one a try later!
Duty to follow instructions
Magnus, an agent for Insurance Company, received a call from Carla about orally
binding coverage on her home at closing which was today. To be effective an
agreement to insure must have, whether oral or written, which one of the following
components?
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The object or premises if any to be insured
In a producer/ insurer agency relation ship, if one of the parties no longer wants the
relationship to continue, the power, if not the right, to terminate the relationship is
held by
Give this one a try later!
, Either the insurer or the producer.
Patty bought a particular brand of windows because they were warranted free of
defect for the lifetime of the purchaser. If anything happened the windows were
guaranteed to be replaced at not cost to the original owner. Six years later, two of the
windows began to fog between the panes. Patty had them replaced and was billed
$600 for labor and materials. Patty sued the window company stating she would not
have purchased them except for the future no-cost guarantee. Patty's best basis for
the lawsuit is
Give this one a try later!
Misrepresentation.
Joey purchased a "two-and-a-half ton capacity" trailer for the purpose of hauling junk
metal for a fee. When a two-ton load of metal caused the trailer frame to twist under
the load, Joey sued the manufacturer. The theory on which to base his lawsuit with the
most likelihood of success is
Give this one a try later!
Misrepresentation
In the landmark case of Rylands v. Fletcher, the court extended the doctrine of strict
liability to certain activities on real property. This case arose from the defendant's
construction of a water reservoir. The court held the defendant strictly liable for the
injury. The decision applies only to
Give this one a try later!
, Things artificially brought onto land.
Argot Mutual drafts the wording of its insurance contracts. Because Argot determines
the exact wording of the contract, the insureds have no choice but to either accept
the policy wording as is, or purchase insurance elsewhere. Therefore, Argot's policy is
considered to be a
Give this one a try later!
Contract of adhesion
Ross, a sales clerk for Keithly's Hardware Store, serviced Oscar who paid for his
purchases with a check. Keithly's has a policy of credit card or cash only. Ross
accepted Oscar's check for his purchases since Oscar has been an excellent
customer. What type of authority does this illustrate?
Give this one a try later!
Apparent authority
Oscar purchased a term life insurance policy from TLife, Inc. The policy included a
renewal option. If Oscar chose to renew, TLife had the right to require a detailed
medical examination. At the end of the term, Oscar decided to renew the policy, and
TLife accepted his renewal without demanding a medical exam. One week into the
renewal term, Oscar became seriously ill. TLife began an investigation and asked
Oscar to sign a nonwaiver agreement. When he complied, TLife insisted that Oscar
participate in the medical exam that was TLife's right under the renewal option. Which
one of the following answers best explains whether TLife has the right to demand a
medical exam?
his vehicle. Logan lends this vehicle to a neighbor who has an accident and is found
legally liable. There were injuries to the not-at-fault driver and damage to that vehicle
as well. In this case, which one of the following is considered to be third-party to the
automobile insurance policy?
Give this one a try later!
Only the accident victim
George left his camera at the repair shop to be fixed. An unknown arsonist burned the
shop to the ground, destroying George's camera. The fire marshal found no fault with
any of the repair shop's fire protection practices and systems. Under the
circumstances,
Give this one a try later!
, The bailee is not responsible for the destruction of the camera.
Maria is an insurance agent who represents Three Hills Insurance. By agreement
between the two parties, Maria has the authority to bind up to $1 million in property
coverage on businesses that fall within specific territories and classes of business.
However, Maria does occasionally bind coverage limits that are 5-10% above her
authority level. Which one of the following duties to the insurer has Maria breached?
Give this one a try later!
Duty to follow instructions
Magnus, an agent for Insurance Company, received a call from Carla about orally
binding coverage on her home at closing which was today. To be effective an
agreement to insure must have, whether oral or written, which one of the following
components?
Give this one a try later!
The object or premises if any to be insured
In a producer/ insurer agency relation ship, if one of the parties no longer wants the
relationship to continue, the power, if not the right, to terminate the relationship is
held by
Give this one a try later!
, Either the insurer or the producer.
Patty bought a particular brand of windows because they were warranted free of
defect for the lifetime of the purchaser. If anything happened the windows were
guaranteed to be replaced at not cost to the original owner. Six years later, two of the
windows began to fog between the panes. Patty had them replaced and was billed
$600 for labor and materials. Patty sued the window company stating she would not
have purchased them except for the future no-cost guarantee. Patty's best basis for
the lawsuit is
Give this one a try later!
Misrepresentation.
Joey purchased a "two-and-a-half ton capacity" trailer for the purpose of hauling junk
metal for a fee. When a two-ton load of metal caused the trailer frame to twist under
the load, Joey sued the manufacturer. The theory on which to base his lawsuit with the
most likelihood of success is
Give this one a try later!
Misrepresentation
In the landmark case of Rylands v. Fletcher, the court extended the doctrine of strict
liability to certain activities on real property. This case arose from the defendant's
construction of a water reservoir. The court held the defendant strictly liable for the
injury. The decision applies only to
Give this one a try later!
, Things artificially brought onto land.
Argot Mutual drafts the wording of its insurance contracts. Because Argot determines
the exact wording of the contract, the insureds have no choice but to either accept
the policy wording as is, or purchase insurance elsewhere. Therefore, Argot's policy is
considered to be a
Give this one a try later!
Contract of adhesion
Ross, a sales clerk for Keithly's Hardware Store, serviced Oscar who paid for his
purchases with a check. Keithly's has a policy of credit card or cash only. Ross
accepted Oscar's check for his purchases since Oscar has been an excellent
customer. What type of authority does this illustrate?
Give this one a try later!
Apparent authority
Oscar purchased a term life insurance policy from TLife, Inc. The policy included a
renewal option. If Oscar chose to renew, TLife had the right to require a detailed
medical examination. At the end of the term, Oscar decided to renew the policy, and
TLife accepted his renewal without demanding a medical exam. One week into the
renewal term, Oscar became seriously ill. TLife began an investigation and asked
Oscar to sign a nonwaiver agreement. When he complied, TLife insisted that Oscar
participate in the medical exam that was TLife's right under the renewal option. Which
one of the following answers best explains whether TLife has the right to demand a
medical exam?
