Deck 8: Insurance

Question 1

By law an insurance policy has to be between just two entities

Answer 1

False

Question 2

An employer can never be held liable beyond the compensation provided by Worker's Compensation Insurance

Answer 2

False

Question 3

Design Professionals rather than Constructors carry Errors and Omissions Insurance

Answer 3

False

Question 4

Builder's Risk Insurance

A) covers risk shifting clauses in the contract
B) covers exculpatory clauses in the contract
C) may be carried by the Owner rather than the Contractor
D) is usually not required when there are no major risks

Question 5

Commercial General Liability Insurance

A) is used to cover losses to others caused by the policy holder
B) covers exculpatory clauses in the contract
C) may be carried by the Owner rather than the Contractor
D) is not necessary provided it is so stated in the contract

Question 6

Builder's Risk Insurance

A) might exclude damage due to flood
B) might exclude damage due to acts of war
C) might exclude damage due to an earthquake
D) all of these

Question 7

Commercial General Liability Insurance

A) protects against unexpected loss
B) protects against improper workmanship
C) protects against discovering hazardous substances
D) protects the Contractor against delays

Question 8

Defending a Commercial General Liability claim

A) the insurance company is required by law to do all the work
B) the Contractor is not allowed to testify
C) the Contractor should try to provide as much information as possible to the attorney for the insurance company
D) no one wins

Question 9

If an insurance company accepts a claim with reservation

A) they intend to drop the claim
B) they might defend the claim initially but reserve the right to drop it
C) they have little experience in this type of claim and reserve the right to change attorneys
D) they have no way to know whether the claim has merit

Question 10

Worker's Compensation Insurance

A) covers medical expenses but not lost wages
B) covers medical expenses and lost wages
C) covers lost wages but not medical expenses
D) requires the injured employee to sue for medical expenses and lost wages

Question 11

When defending a claim, the insurance company will want to know if the claim has merit and if the Contractor was covered for what occurred

Question 12

Builder's Risk Insurance continues through the project until the Owner occupies the structure

Question 13

A worker will have to sue an employer for injuries incurred while on the project

Question 14

The Owner can carry the Builder's Risk insurance instead of the Contractor

Question 15

Commercial General Liability Insurance is based on the statistical averages that accidents occur

Question 16

Design Professionals rather an Constructors carry Errors and Omissions Insurance

Question 17

The average experience modifier is 1.0

Question 18

An occurrence policy protects the insured against claims made during the policy period even if the insurance carrier is no longer under Contract to the Contractor

Question 19

Paying under the table is an attempt to avoid payroll and other costs related to the amount of payroll paid

Question 20

You can never waive subrogation rights

Question 21

Umbrella insurance adds to the total dollar amount protection of the insurance

Question 22

Unemployment insurance protects the worker if they become unemployed through no fault of their own

Question 23

The average experience modifier is

A) 10
B) 0.5
C) 1
D) none of these