Property And Casualty Practice Exam Free
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Ready to ace your Property and Casualty Practice Exam? Dive into our quiz and sharpen your knowledge on insurance principles, policies, and regulations. Whether you're gearing up for your licensing exam or just want to test your understanding of insurance concepts, this quiz has got you covered.
Explore topics like liability coverage, property insurance, risk management, and more. With detailed explanations for each question, you'll not only test your knowledge but also learn along the way. Take advantage of this valuable resource and boost your chances of success on the Property and Casualty Practice Exam!
Property And Casualty Practice Questions and Answers
- 1.
Which of the following represents a pure risk?
- A.
Terry places a bet on the outcome of a basketball game.
- B.
Margaret's dog is temperamental. She's afraid that it will bite a neighbor someday and she will be held responsible.
- C.
Sam transfers all of his retirement funds into a stock that he expects to rise in value.
- D.
Cindy, along with 32 others, puts $100 into an Indy 500 race pool at work. The person holding the name of the winning driver will win the entire $3,300.
Correct Answer
B. Margaret's dog is temperamental. She's afraid that it will bite a neighbor someday and she will be held responsible.Explanation
The correct answer is Margaret's dog is temperamental. This represents a pure risk because it involves the possibility of a negative outcome or loss without any potential for gain. Margaret is concerned about the potential liability and financial consequences if her dog bites a neighbor, which is a situation that she has no control over and could result in legal and financial repercussions.Rate this question:
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- 2.
What does the law of large numbers state?
- A.
That there must be a narrow spread of risk for insurance to be effective.
- B.
Requires all members of society with insurance exposures to purchase insurance.
- C.
That the more examples used to develop a statistic, the more reliable the statistic will be.
Correct Answer
C. That the more examples used to develop a statistic, the more reliable the statistic will be.Explanation
The law of large numbers states that the more examples or observations used to develop a statistic, the more reliable and accurate that statistic will be. This is because as the sample size increases, the random variations and errors tend to cancel each other out, resulting in a more precise estimate of the true value. In other words, the law of large numbers suggests that with a larger sample size, the statistic will converge towards the expected value or true population parameter.Rate this question:
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- 3.
LaTonya purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home? Choose all that apply.
- A.
LaTonya
- B.
John
- C.
LaTonya's son, who would like to inherit the home some day
- D.
First City Bank
Correct Answer(s)
A. LaTonya
D. First City BankExplanation
LaTonya has an insurable interest in the home because she is the owner and purchaser of the property. First City Bank also has an insurable interest because they have a financial stake in the property as the lender. John does not have an insurable interest since he is no longer the owner of the home. LaTonya's son does not have an insurable interest at this time since he does not have any legal or financial claim to the property.Rate this question:
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- 4.
Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?
- A.
Avoidance
- B.
Reduction
- C.
Retention
- D.
Transfer
Correct Answer
B. ReductionExplanation
The installation of an automatic sprinkler system in the office building of Highpoint Industries is an example of the risk management method of reduction. By installing the sprinkler system, the company is taking proactive measures to reduce the risk of fire damage and potential loss. This method aims to minimize the impact and likelihood of risks by implementing preventive measures and controls.Rate this question:
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- 5.
Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?
- A.
Transfer
- B.
Retention
- C.
Avoidance
- D.
Reduction
Correct Answer
C. AvoidanceExplanation
The correct answer is avoidance. In this scenario, Benson Pharmaceutical Company decides not to manufacture a new drug because it has serious potential side effects. By avoiding the manufacturing of the drug altogether, the company is effectively eliminating the risk associated with it. This risk management method involves completely avoiding or abstaining from activities that could potentially lead to negative outcomes.Rate this question:
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- 6.
Which of the following is a hazard as opposed to a peril?
- A.
Fire
- B.
Lightning
- C.
Wet pavement
- D.
Flood
Correct Answer
C. Wet pavementExplanation
Wet pavement is considered a hazard rather than a peril because it poses a risk or danger to individuals. Hazards are conditions or situations that can cause harm, while perils are events or causes of loss. In this case, wet pavement increases the likelihood of accidents or slips, making it a hazard. Fire, lightning, and flood are all perils as they are specific events or causes of damage or loss.Rate this question:
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- 7.
What is meant by a contract of adhesion?
- A.
Both parties are required to provide services for the other.
- B.
One party draws up the contract provisions, and the other party adheres to the terms.
- C.
The contract can be revoked by any party at any time for any reason.
- D.
A contract that is formed without any consideration by either party.
Correct Answer
B. One party draws up the contract provisions, and the other party adheres to the terms.Explanation
B is correct. Insurance policies are contracts of adhesion because the insurance company drafts the policy provisions and the insured adheres to the policy terms.Rate this question:
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- 8.
Which of the following describes the principle of indemnity?
- A.
After a loss, an insured should be restored to approximately the same condition that existed before the loss.
- B.
Every insured will receive full compensation for all losses in all cases.
- C.
When property is damaged or destroyed, the insurance company must pay the full replacement cost.
- D.
In the case of bodily injuries, liability coverage must be available without regard to any policy exclusions.
Correct Answer
A. After a loss, an insured should be restored to approximately the same condition that existed before the loss.Explanation
A is correct. The principle of indemnity states that when a loss occurs, an individual should be restored to the approximate financial condition he or she was in before the loss.Rate this question:
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- 9.
Which part of an insurance policy describes what property and/or perils will be covered by the contract?
- A.
Definitions
- B.
Exclusions
- C.
Insuring agreement
- D.
Conditions
Correct Answer
C. Insuring agreementExplanation
C is correct. The insuring agreements state what types of losses the insured will be indemnified for. This section also describes the type of property covered and the perils against which it is insured.Rate this question:
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- 10.
What is the consideration that an insurer gives to the insured under an insurance contract?
- A.
Stated benefits and the dates on which they are to be paid
- B.
The premium
- C.
A promise to pay for certain losses if they occur
- D.
A promise to be conscientious about the customer's situation
Correct Answer
C. A promise to pay for certain losses if they occurExplanation
C is correct. Consideration is the thing of value exchanged under a contract. The insured's consideration is the premium; in return, the insurer promises to pay for certain losses if they occur.Rate this question:
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- 11.
Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract?
- A.
Unilateral
- B.
Aleatory
- C.
Conditional
- D.
Utmost good faith
Correct Answer
B. AleatoryExplanation
B is correct. If no loss occurs, the insured will receive no benefits although he or she paid premiums, but if a large loss occurs, the insured might receive benefits that far exceed the premium payments.Rate this question:
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- 12.
The "ground rules" are described in which part of an insurance policy?
- A.
Definitions
- B.
Exclusions
- C.
Insuring agreement
- D.
Conditions
Correct Answer
D. ConditionsExplanation
D is correct. The conditions describe the responsibilities and obligations of the insurer and the insured.Rate this question:
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- 13.
A mutual insurance company
- A.
Is managed by an attorney-in-fact.
- B.
Pays dividends to its stockholders.
- C.
Is owned by its insureds.
- D.
Is a voluntary association of individuals that shares in writing insurance contracts for a variety of risks.
Correct Answer
C. Is owned by its insureds.Explanation
C is correct. In a mutual company, insureds are also owners of the company. They can vote to elect the management of the company. Profits are returned to insureds in the form of dividends or reductions in future premiums.Rate this question:
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- 14.
A nonexclusive agent
- A.
Represents a single insurance company.
- B.
Works for a direct writer.
- C.
Is an independent businessperson.
- D.
Does not collect commissions.
Correct Answer
C. Is an independent businessperson.Explanation
C is correct. A nonexclusive, or independent, agent represents more than one company. This type of agent collects commissions on the policies sold, but collects no salary from the companies he or she represents.Rate this question:
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- 15.
Solicitors may not
- A.
Issue or countersign policies.
- B.
Sell insurance.
- C.
Collect premiums.
- D.
Sign an application.
Correct Answer
A. Issue or countersign policies.Explanation
A is correct. A solicitor, who often works with or for an agent, has more limited authority than the agent. A solicitor sells insurance and might even be authorized to collect premiums. However, a solicitor cannot issue or countersign policies.Rate this question:
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- 16.
At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system?
- A.
Captive
- B.
Independent
- C.
Direct writer
- D.
Direct response
Correct Answer
C. Direct writerExplanation
C is correct. In the direct writer system, the insurer's agents are actually employees. They can receive a salary, be paid on commission, or both.Rate this question:
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- 17.
Which insurance company department is responsible for accepting and rejecting applications based on company standards?
- A.
Underwriting
- B.
Loss Control
- C.
Claims
- D.
Agency
Correct Answer
A. UnderwritingExplanation
A is correct. Underwriting is the process of selecting certain types of risks and rejecting others so that the insurer will have a profitable book of business.Rate this question:
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- 18.
Which insurance company department is responsible for paying insureds' covered losses?
- A.
Audit
- B.
Claims
- C.
Underwriting
- D.
Reinsurance
Correct Answer
B. ClaimsExplanation
B is correct. The claims department sees that the company's insureds are adequately indemnified for their losses. Claim adjusters determine the cause of loss, whether the loss is covered by the policy, the value of the loss, and the amount of loss payable by the policy.Rate this question:
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- 19.
Who is responsible for licensing insurance agents?
- A.
Lloyd's Associations
- B.
State insurance department
- C.
Interstate Commerce Commission
- D.
Insurance Services Office
Correct Answer
B. State insurance departmentExplanation
B is correct. State insurance departments devote much of their time to working with insurance agents. One of their most important duties is agent licensing.Rate this question:
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- 20.
Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as
- A.
Rebating.
- B.
Twisting.
- C.
Misrepresentation.
- D.
Failure of fiduciary responsibility.
Correct Answer
A. Rebating.Explanation
A is correct. Rebating is giving or offering some benefit other than those specified in the policy, such as cash, gifts, or securities, to induce a customer to buy insurance. Rebating is illegal in all but two states.Rate this question:
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- 21.
J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees' medical expenses out of a fund specifically created for this purpose. This is an example of
- A.
Fraternal insurance.
- B.
Self-insurance.
- C.
Reinsurance.
- D.
Government insurance.
Correct Answer
B. Self-insurance.Explanation
B is correct. With self-insurance, part or all of the risk of loss is borne without the benefit of insurance coverage to fall back on if a loss occurs.Rate this question:
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- 22.
Which of the following statements concerning regulation of the insurance industry is correct?
- A.
The insurance industry is regulated exclusively by the federal government.
- B.
The insurance industry is very loosely regulated.
- C.
The state insurance department is responsible for controlling insurance matters within the state.
- D.
The state insurance department serves only the interests of the insurance industry.
Correct Answer
C. The state insurance department is responsible for controlling insurance matters within the state.Explanation
C is correct. Insurance is regulated primarily by the states. It is closely regulated for the good of the insurance industry and the general public.Rate this question:
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- 23.
Which of the following is not one of the duties of an agent?
- A.
Making appropriate coverage recommendations to prospective customers
- B.
Writing the provisions of a customer's policy
- C.
Helping prospective customers complete the application
- D.
Assuring that customers understand the coverage they are purchasing
Correct Answer
B. Writing the provisions of a customer's policyExplanation
B is correct. Agents have a responsibility to interact effectively with customers in regard to the insurance transaction, but they do not determine the provisions of the policies the insurer issues.Rate this question:
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- 24.
The written agency contract between an insurer and an agent constitutes the agent's
- A.
Express authority.
- B.
Implied authority.
- C.
Assertive authority.
- D.
Apparent authority.
Correct Answer
A. Express authority.Explanation
A is correct. The specific provisions of the written agency contract constitute the authority expressly given to the agent by the insurer.Rate this question:
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- 25.
The Excel Insurance Company is incorporated in the state of Tennessee. It is also authorized to do business in Georgia. In Georgia, Excel is known as what type of company?
- A.
Alien
- B.
Foreign
- C.
Domestic
- D.
Non-admitted
Correct Answer
B. ForeignExplanation
B is correct. Insurance companies are known as domestic companies in their home states, foreign companies in other states in which they are admitted to do business, and alien companies if their home office is located in a country other than the United States.Rate this question:
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- 26.
Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
- A.
No, that would be a violation of the principle of open competition.
- B.
No, they can only require that forms and rates be subject to prior approval.
- C.
No, insurers can always begin using forms and rates as soon as they are properly filed with the state.
- D.
Yes, some states have mandatory forms or rates for certain coverages.
Correct Answer
D. Yes, some states have mandatory forms or rates for certain coverages.Explanation
D is correct. In addition to open competition, prior approval, and file-and-use rules, some states mandate the forms or rates for certain coverages.Rate this question:
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- 27.
Which of the following statements concerning binders is correct?
- A.
They guarantee that a policy will be issued.
- B.
They can be issued by insurance companies, but not agents.
- C.
They expire on the effective date of the policy to which they apply, or on the expiration date of the binder if the policy is not issued.
- D.
They show an intent to consider issuing insurance, but do not include any commitment to provide coverage.
Correct Answer
C. They expire on the effective date of the policy to which they apply, or on the expiration date of the binder if the policy is not issued.Explanation
C is correct. An agent or an insurance company can issue a binder. A binder does not guarantee that a policy will be issued; it only guarantees temporary coverage. If the company decides to not issue the policy, coverage under the binder may be cancelled by a formal cancellation notice; however, if no formal cancellation is made, coverage remains in effect until the binder expires. If a policy is issued, coverage under the binder ceases as of the effective date of the policy.Rate this question:
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- 28.
What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
- A.
Judgment
- B.
Merit
- C.
Certification
- D.
Manual
Correct Answer
B. MeritExplanation
B is correct. Experience rating, retrospective rating, and schedule rating are all types of merit rating.Rate this question:
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- 29.
To void a policy, misrepresentation or concealment must be which of the following?
- A.
Concern material facts.
- B.
Be intentional.
- C.
Both A and B are correct.
- D.
Neither A nor B are correct.
Correct Answer
C. Both A and B are correct.Explanation
Both material misrepresentation or concealment and intent are typically required for an insurance company to void a policy. Material facts are important information that could impact the insurer's decision to issue a policy or the terms of the policy. Intentional misrepresentation or concealment suggests that the policyholder knowingly provided false information or intentionally hid material facts from the insurer.Rate this question:
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- 30.
An agreement between the insured and the insurer that certain conditions will be met is which of the following?
- A.
Misrepresentation
- B.
Warranty
- C.
Estoppel
- D.
Certificate of insurance
Correct Answer
B. WarrantyExplanation
B is correct. A warranty becomes part of the policy. If it is breached, the insurer can void the policy.Rate this question:
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- 31.
Which one of these statements about the Fair Credit Reporting Act is not correct?
- A.
Prenotification is required for both regular and investigative reports.
- B.
Postnotification is required when insurance coverage is denied because of adverse information in a credit report.
- C.
An agent who obtains information from a reporting agency under false pretenses can be sent to jail and fined.
- D.
Consumers have the right to challenge information in investigative reports and to have incorrect information removed.
Correct Answer
A. Prenotification is required for both regular and investigative reports.Explanation
A is correct. The question asks for the statement that is not correct. Prenotification is required for investigative reports, but not regular reports. The other choices are provisions contained in the Fair Credit Reporting Act.Rate this question:
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- 32.
The insured's policy is nearing the expiration date. The insurance company doesn't want to continue the insured's coverage, so it sends the insured a notice that the policy will not continue beyond the expiration date of the policy. This is considered which of the following?
- A.
Flat cancellation
- B.
Nonrenewal
- C.
Pro rata cancellation
- D.
Unearned renewal
Correct Answer
B. NonrenewalExplanation
A8: B is correct. Nonrenewal occurs when the insured or the insurer decides to not continue coverage for another policy period after the current policy period expires. Flat cancellation means to cancel a policy on its effective date. Pro rata cancellation means to cancel a policy midterm so that a refund is made of unearned premium.Rate this question:
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- 33.
Walt and Joanna are co-owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that insures the business, with Joanna's name appearing first. The declarations also list First State Bank, which has an outstanding loan on the business. Who is considered a named insured on the policy?
- A.
Walt only
- B.
Joanna only
- C.
Both Walt and Joanna
- D.
First State Bank
Correct Answer
C. Both Walt and JoannaExplanation
C is correct. The named insured is the person, business, or other entity named in the declarations to whom the policy is issued. First State Bank has an insurable interest as the mortgagee, but is not a named insured.Rate this question:
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- 34.
Renata's home is demolished in a fire that started when a neighbor misdirected the fireworks he set off to celebrate the Fourth of July. Renata's insurance company pays her for the damage, and then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?
- A.
Liberalization
- B.
Subrogation
- C.
Abandonment
- D.
Salvage
Correct Answer
B. SubrogationExplanation
B is correct. The subrogation condition transfers the insured's right to collect from a responsible third party to the insurance company.Rate this question:
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- 35.
A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?
- A.
Appraisal
- B.
Arbitration
- C.
Duties after loss
- D.
Subrogation
Correct Answer
C. Duties after lossExplanation
C is correct. Most insurance policies include conditions that specify what the insured and insurer must do when a loss occurs. The insured's responsibilities after a loss include giving notice of claim to the agent or company, protecting property from further damage, and completing a proof of loss form.Rate this question:
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- 36.
Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.
- A.
$26,640
- B.
$40,000
- C.
$13.280
- D.
$60,000
Correct Answer
B. $40,000Explanation
B is correct. Because total coverage is $300,000 and policy C provides 50% of this amount ($150,000) it is obligated to pay 50% of the loss.Rate this question:
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- 37.
Which of the following would not normally be excluded under a property insurance contract?
- A.
Catastrophic losses
- B.
Nonaccidental losses
- C.
Losses to personal property
- D.
Extra-hazardous perils
Correct Answer
C. Losses to personal propertyExplanation
C is correct. Property insurance policies typically exclude nonaccidental losses, losses controllable by the insured, extra-hazardous perils, catastrophic losses, and property covered in other policies.Rate this question:
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- 38.
An indirect loss is which of the following?
- A.
The cause of a direct loss
- B.
A type of loss that results from a direct loss
- C.
An insignificant property loss
- D.
Not a type of property loss
Correct Answer
B. A type of loss that results from a direct lossExplanation
B is correct. An indirect loss is one that comes as a result, or consequence, of the original loss.Rate this question:
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- 39.
Consuela's Homeowners policy has an 80% Coinsurance condition. Her home's value is $125,000. What is the minimum amount of coverage she must carry to avoid a coinsurance penalty for partial losses?
- A.
$125,000
- B.
$100,000
- C.
$80,000
- D.
$75,000
Correct Answer
B. $100,000Explanation
B is correct. A Coinsurance condition requires an insured to carry a certain amount of insurance, which is expressed as a percentage of the insured property's value, in order to avoid a coinsurance penalty for partial losses. In this case, Consuela must carry insurance at least equal to 80% of the home's value, or $100,000, in order to satisfy the requirement.Rate this question:
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- 40.
According to the terms of the Mortgage condition, which of the following does not apply to the rights and duties of the mortgagee?
- A.
The mortgagee might have to pay the premium if the insured doesn't.
- B.
The mortgagee can file a proof of loss when the insured fails to do so to protect its rights under the policy.
- C.
The mortgagee might have coverage under the policy even if something the insured does causes a claim to be denied.
- D.
The mortgagee has no insurable interest in the covered property.
Correct Answer
D. The mortgagee has no insurable interest in the covered property.Explanation
Mortgagee might have to pay the premium if the insured doesn't: This is true in some cases, like "Mortgagee in Possession" scenarios, where the mortgagee takes responsibility for maintaining the property and might need to pay insurance premiums.
Mortgagee can file a proof of loss when the insured fails to do so: This is true to protect the mortgagee's interest in case of a claim.
Mortgagee might have coverage under the policy even if something the insured does causes a claim to be denied: Depending on the specific clauses in the policy, the mortgagee might have limited coverage even if the insured's actions cause a claim denial.
However, the statement about the mortgagee having no insurable interest is generally false. As the lender with a financial stake in the property, the mortgagee has a clear insurable interest. The mortgage itself serves as evidence of this interest. They typically require property insurance as a condition of the loan to protect their investment in case of damage or loss.
Therefore, the correct answer is: The mortgagee has no insurable interest in the covered property.Rate this question:
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- 41.
Jake has two insurance policies on his house. They are issued by different companies, but they are otherwise identical. The term for this is
- A.
Concurrent causation
- B.
Fraud
- C.
Concurrent coverage
- D.
Double indemnity
Correct Answer
C. Concurrent coverageExplanation
C is correct. Concurrent coverage refers to two policies that offer the same coverage against the same perils. Concurrent causation is when two perils contribute to the same loss. Having concurrent coverage is not fraudulent. Double indemnity is a provision of life insurance policies that pays an extra benefit if death results from an accident rather than an illness.Rate this question:
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- 42.
Under the Appraisal condition, the insured and the insurance company each chooses an appraiser. If the appraisers do not agree, the dispute is submitted to a third individual agreed upon jointly by the insured and the insurance company. That third party is called the
- A.
Attorney-in-fact
- B.
Judge
- C.
Super-appraiser
- D.
Umpire
Correct Answer
D. UmpireExplanation
D is correct. The umpire is selected jointly by the insured and the insurance company and settles the dispute if the appraisers selected by the insured and the insurance company do not agree on the value of the loss.Rate this question:
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- 43.
Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
- A.
Proximate cause
- B.
Negligence
- C.
A criminal act
- D.
An intervening cause
Correct Answer
B. NegligenceExplanation
B is correct. Negligence is the lack of reasonable care that is required to protect others from the unreasonable chance of harm.Rate this question:
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- 44.
All of the following must be present to establish negligence except which one?
- A.
Proximate cause
- B.
Legal duty owed and breach of duty
- C.
Damages
- D.
Willful action
Correct Answer
D. Willful actionExplanation
D is correct. Negligence is the lack of reasonable care that is required to protect others from the unreasonable chance of harm. The factors used to establish negligence are legal duty owed, breach of legal duty owed, proximate cause, and damages.Rate this question:
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- 45.
An action that, in a natural and continuous sequence, produces a loss is the
- A.
Hazard.
- B.
Proximate cause.
- C.
Appraisal point.
- D.
Exposure.
Correct Answer
B. Proximate cause.Explanation
B is correct. Proximate cause is one of the elements required to establish a charge of negligence. It is an action that, in a natural and continuous sequence, produces a loss.Rate this question:
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- 46.
Liability that is imposed as a matter of law without regard to negligence is called what?
- A.
Vicarious liability
- B.
Absolute liability
- C.
Breach liability
- D.
Proximate liability
Correct Answer
B. Absolute liabilityExplanation
B is correct. Absolute liability is imposed by law on those participating in certain activities that are considered to be especially hazardous. Individuals involved in such operations can be held liable for the damages of another even though the individual was not negligent.Rate this question:
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- 47.
Liability that an insured incurs because of the actions of others, such as employees, is called what?
- A.
Vicarious liability
- B.
Absolute liability
- C.
Breach liability
- D.
Proximate liability
Correct Answer
A. Vicarious liabilityExplanation
A is correct. Vicarious liability is liability that a person or business incurs because of the actions of others, such as family members or employeesRate this question:
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- 48.
Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use?
- A.
Assumption of risk
- B.
Comparative negligence
- C.
Contributory negligence
- D.
Statute of limitations
Correct Answer
A. Assumption of riskExplanation
A is correct. Assumption of risk applies when a person knowingly exposes himself or herself to danger or injury. When a person assumes this risk, he or she might be prevented from recovering from a negligent party. This doctrine is frequently associated with injuries incurred by spectators at sporting events.Rate this question:
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- 49.
Which one of the following illustrates the concept of contributory negligence?. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.
- A.
. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.
- B.
Jane goes to a hair salon to have her hair colored. The hairdresser mixes the color improperly and dyes Jane's hair purple.
- C.
Rosa is injured when her car is struck from behind while she is stopped at a red light.
- D.
Ben turns a corner too fast and strikes Reba's car, which was illegally parked in a fire lane.
Correct Answer
D. Ben turns a corner too fast and strikes Reba's car, which was illegally parked in a fire lane.Explanation
D is correct. In this case, both parties contributed to the accidentBen by driving too fast and Reba by illegally parking her car. In the other examples, the injured party's own negligence did not contribute to the loss.Rate this question:
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- 50.
Lee sues Pat for injuries sustained in an auto accident. During the trial, it is determined that Lee's negligence contributed to the loss. Under comparative negligence laws, what can Lee recover?
- A.
Lee cannot recover any damages from Pat.
- B.
Lee's damages will be reduced to the extent of her own liability for the loss.
- C.
Lee can recover the full amount of the loss from Pat.
- D.
Lee might only recover 50% of the damages she claims regardless of her degree of negligence.
Correct Answer
B. Lee's damages will be reduced to the extent of her own liability for the loss.Explanation
The correct answer is:
Lee's damages will be reduced to the extent of her own liability for the loss.
Under comparative negligence laws, Lee can recover damages from Pat, but the amount she can recover will be reduced in proportion to her own degree of negligence in the auto accident.Rate this question:
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Apr 18, 2024Quiz Edited by
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Feb 24, 2009Quiz Created by
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