C120 Study 5

What does liability insurance cover?

• Damage to your own property

• Claims by others when you’re liable

• Both A and B

• Nothing

Which is NOT part of a negligence claim?

• Duty

• Breach

• Causation

• Premium

Who gets the highest duty of care on a property?

• Trespasser

• Invitee

• Licensee

• Contractual Entrant

True/False: Liability underwriting is simple because outcomes are predictable.

• True

• False

What are the two main focuses in commercial liability underwriting?

• Premises and Products

• Auto and Workers’ Comp

• Life and Health

• Cyber and Environment

What is "drop‑down coverage" in a personal umbrella policy?

• Coverage decreases after a claim

• Covers only auto liability

• Lowers overall risk

• Fills gaps in the primary policy

Which factor is NOT usually considered in premises liability?

• Lighting and signage

• Maintenance records

• Lease terms

• Owner’s income

True/False:
A personal umbrella policy only works if there is an underlying primary policy.

• True

• False

How does technology add to liability risks?

• It adds risks like drones and cyber issues

• It removes old risks

• It makes underwriting obsolete

• It has no effect

Which scenario increases personal liability risk?

• A safe pool with fences and supervision

• Regular home maintenance

• An aggressive dog without proper control

• Strict visitor safety rules