Question 1

Which of the following is not a requirement of a legally binding contract?

Answer

offer and acceptance.

written.

legal object.

consideration.

competent parties.

1 points

Question 2

1.

Insurance policies contain exclusions because

Answer

some perils are uninsurable.

some types of property must be covered under special policies.

some coverages are subject to separate rating.

some perils are covered under other policies.

all of the above.

1 points

Question 3

1.

One way the principle of indemnity is enforced is

Answer

through valued policy laws.

through the principle of subrogation.

to a greater extent in life insurance than in the field of property insurance.

to the same extent in all fields of insurance.

none of the above.

1 points

Question 4

1.

In the event of a total loss to property insured under a stated-value policy, payment will generally be made for

Answer

the face amount of the policy.

replacement cost.

actual cash value.

the cost to repair or replace the property.

none of the above.

1 points

Question 5

1.

Common law

Answer

is sometimes termed unwritten law.

is also referred to as statutory law.

consists of statutes and codes enacted by legislatures.

is "common" in the sense that it has not yet been addressed by the courts.

none of the above.

1 points

Question 6

1.

Under the doctrine of stare decisis,

Answer

the courts will generally follow precedents from other courts when they are available.

the court must decide each individual case on its merits.

the decisions of other courts have less influence.

a court must follow precedent if one is available.

none of the above.

1 points

Question 7

1.

Which of the following is NOT a basis for tort liability laws in the United States?

Answer

English common laws

United States civil and criminal laws

insurance policy liability clauses

the Doctrine of stare decisis

The Washington Civil Liability Association Doctrine (WCLAD)

1 points

Question 8

1.

Hans sells his car to Pieter and now has no car and no need of auto insurance. Hans calls his State Farm agent to tell him to transfer his auto insurance to Pieter. The agent tells Hans:

Answer

the transfer will not take place until that night/the next morning at 12:01am

that Hans will need to put Pieter on his policy as an additional driver

that Hans must keep paying the premium until the end of the policy period

that he cannot transfer the policy to Pieter

none of the above

1 points

Question 9

1.

Legal liability is imposed by the courts when it has been established that

Answer

there was actual damage or loss.

there was negligence.

the negligence was the proximate cause of the damage or loss.

there are no defenses that relieve the negligent party.

all of the above.

1 points

Question 10

1.

Liability insurance is concerned primarily with the financial consequences of

Answer

crimes.

intentional torts.

unintentional torts.

unintentional torts which are also crimes.

all of the above.

1 points

Question 11

1.

In most jurisdictions, a property owner owes the highest degree of care to

Answer

a trespasser.

a social guest.

a licensee.

an invitee.

the degree of care owed is the same to all.

1 points

Question 12

1.

Vicarious liability involves a situation where one person becomes legally liable because of the negligence of another. One of the doctrines upon which vicarious liability may be based is

Answer

negligence per se.

employee activities.

sovereign immunity.

the fellow servant doctrine.

none of the above.

1 points

Question 13

1.

Failure to do what an ordinary and reasonably prudent person would do under the same or similar circumstances defines:

Answer

proximate cause.

intervening cause.

assumption of risk.

negligence.

concurrent causation.

1 points

Question 14

1.

Professor Davis is sued by a student for giving a failing grade. After a lengthy court trial, the student is awarded a million dollars based on the present value of future lost wages of $750,000, mental anguish from receiving a failing grade of $50,000, and punitive damages to the professor of $200,000 for capricious grading. How much was the student awarded in special damages?

Answer

$ 1,000,000

$ 800,000

$ 750,000

$ 200,000

$ 50,000