1 What is the main purpose of a coinsurance provision in a property insurance policy it encourages inureds to insure to full value 2 The insurance limits for Georgia are 25 50 25 Medical expense to other driver 70000 Damages to other car 50000 Damages to his car 25000 Injuries to him 30000 How much does billy bob insurance pay for loss 50000 4 Methods that are employed to resolve legal disputes without ligitation such as mediation are called alternative dispute resolution techniques 5 A customer was injured when a furncace exploded following its faulty installation by a heating and cooling business For the heating and cooling business this is an example of a completed operations liability 6 Insurance policy underwritten by Lloyds of London that covers a business loss of income due to a pandemic under the current situation this policy would not respond to the ebola crisis because Ebola is only rated a level 2 by the World Health Organization and the policy requires a level 6 or greater 7 subtract deductible before multiplying by 80 when its 80 20 coinsurance clause 8 When reading an insurance policy what does it mean if a word term is bolded or underlined it is defined within the policy 9 Exclusions are used in insurance policies to reduce moral hazard to eliminate coverage not needed by typical insureds and to eliminate coverage for uinurable perils NOT to waive policy conditions 10 When it comes to exotic animals the owners may be held responsible regardless of negligence due to strict liability 11 Even though the manufacturer of the vehicle may be only 1 percent responsible for an accident it may be required to pay a large percentage of the damages under the joint and several liability rule 12 examples of real property include crops grown in the ground carport attatched to the house and house It does not include a car stereo permenantly installed 13 Examples of tort reform proposals include imposing penalties to deter frivolous lawsuits modifying the collateral source rule and moving class action suits of moer than 5 million to the federal courts Does not include eliminating caps on noneconomic damages 14 understand pro rata basis 15 While attending an Atlanta Braves game at Turner Field brain dove over his seat to catch the winning homerun ball However instead of catching the ball it hit him directly in the nose Brian filed a lawsuit for his medical expense The jury found that turner field and the Atlanta braves were not liable for brian s injuries based on the assumption of the risk doctrine 16 liability 25 50 25 medical payments 5000 each person uninsured motorists coverage 30000 each person collision loss 200 deductible comprehensive other than collision loss 100 deductible Tim s 17 year old daughter krista is responsible for an accident in which 3 people in the other vehicle sustain the following injuries Person 1 2000 Person 2 20000 Person 3 30000 How much will tim s policy pay 47000 18 Insurance company s options for settling a collision loss to a covered auto under the PAP include pay the loss in money and to repair or replace the damaged auto 19 IF going into another state and their limit liability insurance is higher you automatically get the higher limit 20 Under contributor negligence rule if you are at fault by any means you will receive 0 21 The extra expense incurred by a business to stay in operation following a fire is an example of an indirect loss 22 Assume that you had an insurance contract on a building that you owned The insurance contract included an 80 coinsurance provision The building is worth 5 000 000 and you bought 3 000 000 worth of insurance with an aggregate deductible of 250 000 You suffered only one loss this year The loss was 2 000 000 How much would you expect from the insurance company 1 250 000 23 Some states limit the amount of punitive damages that may be awarded to the plaintiff Punitive damages are controversial because they are designed to punish the wronddoer and many not have relevance to the damages and injuries suffered by the injured party Punitive damages include payments for non economic damages such as mental anguish and loss of consortium 26 if a defendant is asked if her injuries and lost earnings were covered under workers compensation it can be objected due to the collateral source rule 27 it is easier to determine the maximum possible loss of property exposures than liability exposures liability insurance claims are generally more complex bc there are multiple parties involved and its adversarial 28 Jerry Sundusky was a football coach at penn state He has been convicted of child sexual abuse for abusing boys at a football camp on penn state property Victims of the abuse may be able to sue penn state based on respondent superior 29 what info is contained in the insuring agreement of an insurance policy A summary of the major promises of the insurer 30 medical expenses and loss of income are special damages Pain and suffering are general damages All of these are compensatory damages 31 In addition to the exlusions sections where else might you find exlusions and coverage limitations in an insurance policy Declarations definitions inuring agreement and conditions sections 32 the insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins which is a corridor deductible 33 insurance policy available for companies employers who send employess overseas is kidnap ransom insurance 34 Kim was required expensive surgery for an accident that was Max s fault Max s insurance company presented kim with a check for 25000 at the hospital bc that was the limit in the insurance policy By paying the limit the insurance company was not responsible for paying defense costs in the event kim sued him for the full costs of her medical care lost wages and pain and suffering 36 as long as the cause of the loss is not specifically excluded in the policy all risks coverage may also be called open perils policy 37 being able to collect damages without having to prove negligence under the doctrine of res ispa loquitor 40 congress passed the Sarbanes Oxley Act to address corporate fraud and lax corporate governcance Exam 1 1 ocean ranger the disaster may have been stopped if the crew had been trained to override the electrical panel and keep the rig balanced manually However the rig owners believed that such training was unnecessary because the rig was considered unsinkable The rig was