RPLU Module 3 Questions With Answers Graded A+ Assured Success
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Course
RPLU Module 3
Institution
RPLU Module 3
How do you prove negligence for contractual liability? - ️️Plaintiff must prove:
1. That the contract existed
2. Contract was breached
3. Plaintiff suffered injury or damage
4. Damages were caused by breach of contract
Directors and Officers Insurance - ️️-Provides coverage for directo...
RPLU Module 3
How do you prove negligence for contractual liability? - ✔️✔️Plaintiff must prove:
1. That the contract existed
2. Contract was breached
3. Plaintiff suffered injury or damage
4. Damages were caused by breach of contract
Directors and Officers Insurance - ✔️✔️-Provides coverage for directors and officers
for liability that may arise fro claims/suits filed by shareholders, regulators, employees,
and others.
-In some instances, even the company they work for can sue the board for
mismanagement
Medical Professional Liability Insurance - ✔️✔️Provides coverage for liability that may
arise from the rendering of professional medical services
Non-Medical Professional Liability Insurance - ✔️✔️-Provides coverage for liabilities
that may arise from other types of professional services rendered by non-medical
professionals who have formal training
-Ex. lawyers, accountants, architects, engineers, data privacy/security personnel, and
media/design professionals
Miscellaneous E&O Insurance - ✔️✔️-aka Miscellaneous PLI
-provides coverage for liability that may arise from E&O of numerous categories of non-
traditional professionals
-Ex. Travel agents and consultants
Fiduciary Liability Insurance - ✔️✔️-Provides coverage for liability that may arise from
claims filed by employees and beneficiaries of benefit planes (ex. retirement) for
breaches of fiduciary duties owed to plan participants
Employment Practices Liability Insurance - ✔️✔️-Provides Coverage for liability that
may arise from claims filed by employees, applicants for employment, or even third
parties (i.e. vendors) related to various employment-related actions like harassment and
discrimination
Errors and Omissions Insurance - ✔️✔️-provides coverage for liability that arises from
the alleged negligence (i.e. error or omission) in the course of rendering a professional
service
-Categories Include: Medical Professional Liability, Non-Medical Professional Liability,
and Miscellaneous E&O
,Professional Liability exists when... - ✔️✔️-one is legally responsible for an injury/loss
suffered by another due to the responsible party's negligence
-the responsible party has a duty to the claimant & negligence was the proximate cause
of loss
Wrongful Acts - ✔️✔️-actual or alleged error/omission
-negligence or failure to provide service
-breach of duty
-misleading statement
-others relating to professional service (defined in policy for each type of coverage)
Is proof required to receive a PL defense? - ✔️✔️No. Policies typically cover alleged
wrongful acts as well.
What are the sources of liability? - ✔️✔️Statutory violation, Contractual breach, or
Negligence
Statutory Violation - ✔️✔️violating state or federal law
Negligence - ✔️✔️failure to exercise standard of care
How do PL Policies handle Contractual Liability? - ✔️✔️-Most policies do not cover due
to financial guarantees. However, there is an exception (usually) if liability would still be
there if the contract didn't exist
How do you prove Professional Negligence? - ✔️✔️Must prove the following:
1. Duty - legal duty must exist to maintain a certain standard of care (i.e. trained
professionals held to a higher standard)
2. Breach of Duty - failure to conform to standard of care
3. Injury or Damages - plaintiff must have suffered one of these
4. Causation - Injury or Damages were caused by breach of duty
Expert Witness - ✔️✔️Someone called on in a negligence lawsuit to assist in
establishing whether the professional met the applicable standard of care
What does a professional standard of care require? - ✔️✔️Requires that professionals
exercise the degree of care of reasonable members of their profession with similar skills
and in similar circumstances.
What liability does a professional incur for an error in professional judgement? -
✔️✔️Professionals will not be held liable for errors in professional judgement if they
have met the appropriate standard of care
, What are the four sources from which professional standards are derived? - ✔️✔️-
statutes and regulations
-codes of professional conduct and ethics
-customary practices
-areas of specialization
How does standard care develop and vary? - ✔️✔️-mostly develops through case law
-varies by jurisdiction due to some using federal and others using local standards of
care
-professionals can be held liable for the actions of those they supervise and control
Statutes and Regulations - ✔️✔️-play a major roll in standard of care
-include licensing and accredidation
-can broaden the scope of liability (i.e. Sarbanes-Oxly Act of 2002 or HIPAA)
Codes of Professional Conduct and Ethics - ✔️✔️-set by each profession
-usually refers to confidentiality, conflicts of interest, and professional behavior and
demeanor
What are the sections of a PLI Policy? - ✔️✔️-Dec Page
-Coverage Form (i.e. insuring agreement, insureds, limits, exclusions, definitions, and
conditions)
-Endorsements, Amendments, and Additional Exclusions
What is the best way to determine if something is covered? - ✔️✔️Check the policy's
definition of wrongful acts and then see if there are any modifications to the definition
elsewhere in the policy
Scope of Coverage - ✔️✔️The range of exposures that a policy will cover, likely listed
somewhere in the policy. Can be broad and varied for some risks.
Coverage for Prior Acts - ✔️✔️-some policies (D&O) automatically include prior acts,
others (E&O) do not
-most cover claims made during the policy period for wrongful acts that occurred
AFTER the retro date
-most PLI policies are CM
Do PLI policies cover future wrongful acts? - ✔️✔️Usually not. PLI policies usually do
not cover claims made after the policy has expired
Coverage for outside activities - ✔️✔️-do not usually cover duties outside of the scope
of practice or employment (i.e. moonlighting)
-Sometimes there are exceptions if the Named Insured requested the services be
provided outside of the scope of employment
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