RPLU 18 - Exam Questions And Answers Already Graded A+
4 views 0 purchase
Course
RPLU 18
Institution
RPLU 18
What factors regarding Territory affect UW rates, and why? - ️️* Some states are
more litigious since individuals may be more likely to sue * Courts in states may have
set precedents making it easier to collect from design firms * Location of home office
determines the state rate * Need addi...
RPLU 18 - Exam questions
What factors regarding Territory affect UW rates, and why? - ✔️✔️* Some states are
more litigious since individuals may be more likely to sue * Courts in states may have
set precedents making it easier to collect from design firms * Location of home office
determines the state rate * Need additional licenses to practice in other states * Coastal
regions are issues * California, Florida, and New Jersey are tough and may pay more
for E&O insurance
What were some of the key findings of the Ames & Gough Survey? - ✔️✔️* Premiums
are trending upward but remain modest * Recent claims experience (2 years) * Types of
projects * 50% cited higher claim severity with the majority paying a claim of $1 million
or more * Only 7% cited higher claim frequency * Claims experience is improving *
Firms need to stay active in claim/risk management
What does a limitation of liability clause do? - ✔️✔️Allocates potential liability between
contractual parties. * Also includes a maximum dollar amount of liability
What is the difference between Mediation & Arbitration? - ✔️✔️Mediation is less formal
and non-binding, whereas Arbitration is sometimes required, more formal, and can be
binding.
Who is covered under a policy? - ✔️✔️1) Named Insured/Policyholder 2) Active officers
or employees of Named Insured 3) Retired/former officers or employees 4) Leased
employees 5) Spouses/executors of insureds
* Note that it must be within the scope of duty * Subcontractors are not covered
(Vicariously liable)
What are the roles of a claims professional? - ✔️✔️1) Investigate claims 2) Determine
if losses are covered by the policy 3) Establish case reserves 4) Manage litigation 5)
Settle claims * Do not defend against claims
What are some advantages of a project policy? - ✔️✔️* Cover all claims arising from a
project * Effective for the entire construction period * Effective for a run-off period *
Higher limits are available * Covers anyone who works on a project
What are the differences between payment and performance bonds? - ✔️✔️Payment
bonds ensure subcontractors will be properly paid, whereas Performance bonds ensure
a project is completed timely and in accordance with the contract
, What are supplemental payments? - ✔️✔️An insurer promises to pay for certain
additional costs in addition to damages covered within limits of liability. * Do not affect
policy limits and do not exhaust limits
What can invoke coverage under a Design Professional policy? - ✔️✔️Reporting an
incident that is reasonably expected to result in a claim. (Potential claim event)
Which of the following is not a requirement of an Architect? A) Bachelor's in Architecture
B) Masters in Architecture or lengthy internship C) Architects Principles & Practice
examination D) Architect Registration examination - ✔️✔️Architects Principles &
Practice examination
Why do design professionals buy insurance? - ✔️✔️Many contracts require it be
purchased
What factors develop a sound defense in a design malpractice claim? - ✔️✔️* Statute
of limitations * Statutes of Repose * Economic loss doctrine * Contractual defenses
What are some common endorsements to E&O policies for design professionals? -
✔️✔️* First dollar defense * Defense outside the limits * Waiver of subrogation *
Specific project/client excess limits
A Notice of a Potential Claim must include? - ✔️✔️* What happened * What service
was performed * What possible injury/damage may have occurred * How the
circumstance occurred * When the insured first became aware
What are the five most relevant exclusions to E&O polices for design professionals? -
✔️✔️* Contractual liability & warranty or guarantee * Faulty workmanship * Goods or
products * Related entity * Insured vs. Insured
When can a claim first arise? - ✔️✔️* From a written monetary demand * From a
written or oral monetary demand * From a known incident or probable claim event
What are some high-risk project types? - ✔️✔️* Condominiums/Apartments * Bridges *
Pools * Amusement Rides * Mass transit * Subdivisions
What are some low-risk design disciplines? - ✔️✔️* Mechanical engineering * Land
Surveying * Electrical engineering * Interior design * Landscape architecture
What are some high-risk design disciplines? - ✔️✔️* Architecture * Geotechnical/soil
engineering * Structural engineering
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PatrickKaylian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.39. You're not tied to anything after your purchase.