Legal Industry Ethics, Liabilities & Insurance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which type of insurance covers the replacement costs of finding another employee or owner?

Question 2 2. Which type of insurance covers operating expenses if the owner becomes disabled?

Question 3 3. Business disability insurance _____

Question 4 4. Which type of insurance buys out the business interest of a disabled owner?

Question 5 5. Bill and Tim are the owners of ABC Company who have decided to allow the other owner to purchase their share of the company should one of them become totally disabled. One day, Bill falls down the stairs and no longer is able to work. What type of insurance will allow Tim to purchase Bill's share so that the company can continue to operate?

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Question 6 6. The type of insurance that covers basic things such as injuries that are related to employees and customers and that have occurred at the business are known as what?

Question 7 7. What is product liability?

Question 8 8. If you are an employer and are concerned about your employees possibly suing you because of being unable to pay their bills because of being out due to a work-related injury, which type of insurance would be the best choice?

Question 9 9. According to the lesson, why is legal liability insurance a sound financial strategy?

Question 10 10. If a business is in fear of being vandalized, which type of insurance should be used?

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Question 11 11. What is the main benefit of reinsurance?

Question 12 12. If you have an accident in an old car, you will not recieve enough compensation to buy a more expensive newer car. What concept in insurance does this demonstrate?

Question 13 13. What happens if a person has two insurance policies for a car but the wording of the clauses about double insurance is unclear?

Question 14 14. Who is the cedant?

Question 15 15. What types of events caused insurance companies to start re-insuring?

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Question 16 16. Let's say Ron had a claims made insurance policy that went from January 1, 2000, to January 1, 2001; which event below would be covered.

Question 17 17. If an attorney steals money from a trust fund, which statement is TRUE regarding coverage for the act if a professional liability policy was in effect?

Question 18 18. If an insurance policy covers acts committed during a specific policy period, even if the claim was made after the policy ends, this is called:

Question 19 19. If Celia had professional liability insurance, but it didn't cover the negligence of her office staff, what type of additional coverage would she need?

Question 20 20. Insurance that covers you for a loss you incurred is called:

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Question 21 21. Cathy hires Linda to be her lawyer. Cathy is charged with shoplifting, and Linda will defend her in court. However, Linda is sick, sleeps through much of the trial, and does not adequately represent Cathy in court. Cathy is convicted of shoplifting. This is an example of:

Question 22 22. Cathy hires Linda to be her lawyer. Cathy is facing several drug charges, and Linda will defend her in court. During one of their conversations to prepare for court, Cathy asks Linda for advice on how to destroy evidence and launder her profits by funneling them through a legitimate laundromat business that one of her family members owns. This information is NOT protected by _____.

Question 23 23. Cathy hires Linda to be her lawyer. Cathy was sued for illegally firing several employees. Cathy makes handwritten notes for Linda outlining the reasons why she fired each employee. The attorney for the employees demands a copy of the notes. Linda does not hand them over, demonstrating _____.

Question 24 24. Cathy hires Linda to be her lawyer. Cathy has money she would like to invest and is looking for a worthy company. Linda recommends ABC Company. Linda owns ABC Company, but does not share that information with Cathy. Cathy invests a considerable amount of money in ABC Company. This is an example of:

Question 25 25. Lawyers have a code of ethics that provides individual attorneys with the minimum professional, behavioral, and moral standards expected in their business dealings. This code is known as the _____.

Legal Industry Ethics, Liabilities & Insurance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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