Insurance MCQ

Under state workers compensation programs, employers may not use common law defenses to defend against claims of workers who are injured on the job. In such cases, proof of a worker's injury is proof of responsibility of the employer. Because of this characteristic, workers compensation is an example of A) personal injury. B) absolute liability. C) comparative negligence. D) tort liability. Answer: B) absolute liability.

A legal wrong for which the law allows a remedy in the form of money damages is a A) crime. B) breach. C) misdemeanor. D) tort. Answer: D) tort.

One requirement for proving that an act was negligent is the existence of an unbroken chain of events between the act and the injury or harm that occurred. This unbroken chain of events is called A) condition precedent. B) cause and effect. C) proximate cause. D) condition subsequent. Answer: C) proximate cause.

Under a dram shop law, a business may be held liable for damages resulting from A) the sale of alcohol. B) the creation of an unsafe work place. C) the sale of prescription drugs. D) the creation of a hostile work environment. Answer: A) the sale of alcohol.

One tort reform proposal is capping noneconomic damages. Noneconomic damages include A) payment for time missed from work. B) payment for the cost of a hospital stay. C) payment for pain and suffering. D) payment for the cost of care provided by a physical therapist. Answer: C) payment for pain and suffering.

Steve was involved in an auto accident. Both drivers were partially at fault for the accident. Steve's actual damages were $50,000. He was judged to be 60 percent at fault. If Steve's state has a pure comparative negligence law, how much will Steve collect? A) $0 B) $20,000 C) $30,000 D) $50,000 Answer: B) $20,000

Steve was involved in an auto accident. Both drivers were partially at fault for the accident. Steve's actual damages were $50,000. He was judged to be 60 percent at fault. If Steve's state has a 51 percent rule for comparative negligence, how much will Steve collect? A) $0 B) $20,000 C) $30,000 D) $50,000 Answer: A) $0

Compensatory damages include A) general damages and special damages. B) special damages and punitive damages. C) punitive damages and general damages. D) general damages, special damages, and punitive damages. Answer: A) general damages and special damages.

Congress passed the Sarbanes-Oxley Act to address which of the following problems? A) deficiencies in the tort liability system B) corporate fraud and lax corporate governance C) inefficiencies in state regulation of the insurance industry D) inadequate availability of certain insurance coverages Answer: B) corporate fraud and lax corporate governance

In the context of medical malpractice, what is a "never event"? A) A medical condition that despite the best screening and technology cannot be detected. B) A pandemic that quickly spreads and infects many people. C) A medical error that should never occur. D) An event for which doctors and medical facilities cannot be held legally responsible. Answer: C) A medical error that should never occur.

Trisha was injured when the delivery truck for a local furniture store struck her. The delivery driver claimed the brakes of the delivery truck failed, causing the accident. Trisha filed suit, and in her lawsuit named the delivery driver, the furniture store, the service station responsible for vehicle maintenance, and the manufacturer of the vehicle. Even though the manufacturer of the vehicle may be only 1 percent responsible for the accident, it may be required to pay a large percentage of the damages under the A) collateral source rule. B) assumption of risk rule. C) joint and several liability rule. D) last clear chance rule. Answer: C) joint and several liability rule.

Jan was injured in a work-related auto accident. She sued the other driver, and the case went to court. While questioning Jan, the defendant's lawyer asked if her injuries and lost earnings were covered under workers compensation. Jan's lawyer objected to the question. The judge ruled the question was improper and instructed the jury to disregard the question. Based on the judge's reaction to the question, we can conclude that which of the following rules is in force where this trial took place? A) the joint and several liability rule B) the last clear chance rule C) the comparative negligence rule D) the collateral source rule Answer: D) the collateral source rule

Bruce believes a local manufacturer is responsible for contaminating some land he owns. He filed suit against the company. Rather than have the case go to court, the manufacturing company's legal team suggested mediation or arbitration to settle the case. Methods that are employed to resolve legal disputes without litigation, such as mediation, are called A) collateral source rules. B) alternative dispute resolution techniques. C) joint and several liability techniques. D) comparative negligence rules. Answer: B) alternative dispute resolution techniques.

Francis opened a store. She knows that customers who come to the store may be injured on the premises and hold her responsible for their injuries. Under common law, business customers in the store Francis opened are considered A) aliens. B) licensees. C) trespassers. D) invitees. Answer: D) invitees.

Malcolm was involved in an auto accident. He was judged to be 20 percent at fault in the accident, and the other party was judged to be 80 percent at fault. Malcolm's actual damages were $40,000. Under a pure comparative negligence rule, how much will Malcolm receive for his injuries? A) $8,000 B) $24,000 C) $32,000 D) $40,000 Answer: C) $32,000

Louise was in a hurry and tried to cross the street in the middle of the block rather than at a street corner. A car struck her. Even though Louise placed herself in danger, she may still be able to collect for her injuries if the driver had an opportunity to avoid hitting her but failed to do so. This rule is called the A) last clear chance rule. B) collateral sources rule. C) alternative dispute resolution rule. D) joint and several liability rule. Answer: A) last clear chance rule.

All of the following are categories of torts EXCEPT A) intentional torts. B) breach of contract. C) strict liability. D) negligence. Answer: B) breach of contract.

James was injured in an auto accident caused by another motorist's negligence. To reimburse him for his hospital bills and lost earnings, items which can be specifically itemized, James will receive A) punitive damages. B) special damages. C) imputed damages. D) general damages. Answer: B) special damages.

James was injured in an auto accident caused by another motorist's negligence. He received severe facial lacerations and injured his back in the accident. In payment for his pain, suffering, and disfigurement, losses which cannot be specifically itemized, James will receive A) punitive damages. B) special damages. C) imputed damages. D) general damages. Answer: D) general damages.

Michelle had major abdominal surgery. Months after the surgery, she still did not feel well. When she was operated on again, the surgeon discovered two sponges that were not removed at the conclusion of the first operation. Michelle should be able to collect damages without having to prove negligence under the doctrine of A) joint and several liability. B) res ipsa loquitor. C) contributory negligence. D) uberrimae fidei. Answer: B) res ipsa loquitor.