Aviation Insurance and Risk Management Practice Test

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• What policy sits above underlying coverages to provide additional liability protection beyond their limits?
• What is the more popular basic liability form?
• Who joined the aviation industry as successors to the original firm of Barber & Baldwin, Inc?
• Which of the following is free to do business with any company that will write the business?
• Which risk control method focuses on reducing an organization's dependence on a single asset by making individual losses smaller and more predictable?
• Which organization operates the most successful workers' compensation group program in general aviation?
• Which of the following terms is not a traditional defense used to shield employers from employee injury claims?
• What type of space insurance allows launch providers to offer coverage for a replacement launch if the satellite is not placed in the proper orbit, or if it is damaged?
• Which statement best describes the Business Auto Policy?
• Which domestic aviation underwriter includes 34 of the world's major insurance companies?
• Which defense relies on the injured worker's voluntary acceptance of risk?
• When evaluating helicopter risks, which factor would be most relevant?
• Which of the following is a channel through which insurance policies are distributed?
• Which coverage is a supporting coverage normally available to noncommercial insureds where passenger bodily injury liability is written, providing for medical expenses?
• Which of the following are factors that work together to causes losses?
• What is the unintentional parting with something of value?
• Average load factors and formal training programs are underwriting considerations for which use category?
• Aviation Disaster Family Assistance Act delineates responsibilities among which groups?
• Which term refers to the schedule that limits payments for repairs to critical aircraft components as a percentage of insured value?
• Which policy section defines the duties and procedures after a loss?
• Which policy section describes the overall coverage terms and the perils covered?
• Which option best reflects the standpoints from which insurance can be defined?
• Which type of property is typically the most difficult to value due to its lack of physical form?
• Who typically has the authority to place coverage with multiple insurers and bind coverage?
• What type of hull coverage applies to physical loss or damage while the aircraft is on the ground and not moving?
• What type of property is the most difficult to value?
• Which of the following is a criterion used in the process of airline risk selection?
• For a flight to Mexico City to be covered, which policy section provides the coverage details?
• Industrial aid refers to corporate operated aircraft flown by professional pilots employed exclusively for operating and managing the aircraft. Which group are the pilots typically from?
• Fixed base operators are described as which of the following options?
• Which miscellaneous coverage reimburses expenses for food, lodging, and travel of passengers when a trip is interrupted due to a loss?
• What is the term for an agreement where the reinsurer accepts the portion of the risk beyond the ceding company's retention?
• Which approach for determining market value is the only one appropriate for insurance?
• Which of the following is a criterion used in the process of airline risk selection?
• Which airport liability coverage is applicable regardless of whether the insured is legally responsible for injuries which are sustained?
• Tenants Improvements and Betterments insurance covers improvements made by a tenant to leased space. Which is an example?
• What type of aviation includes activities that involve the discharge of materials from aircraft for food and fiber production and health control?
• Which domestic aviation underwriter includes 34 of the world's major insurance companies, serving aviation risk?
• Group life insurance is more expensive than individual life insurance.
• Which type of insurance is designed to fill gaps in liability protection beyond basic coverages or self-insured retentions?
• Southeastern Aviation Underwriters was acquired by which company?
• In which loss scenario is recovery based on the insured value rather than market value?
• Which defense historically shields an employer when an employee is injured by a coworker?
• What is the specified time period wherein the launch must take place in regards to the insurance policy?
• What term describes the prohibition against asserting a right because of inconsistent action or conduct?
• What document provides temporary coverage evidence before the final policy is issued?
• The first space insurance policy was written in which year?
• Which statement about major sections of the standard automobile policy is true?
• Which coverage covers claims alleging intentional torts such as false arrest, detention, or invasion of privacy?
• Which of the following is NOT typically listed as a type of special damages?
• Which arrangement allows one company to lease its airplane to another company in exchange for equal time use, with no charge beyond the difference in ownership or operating costs?
• What term describes the method of valuing insured property by estimating the cost to replace with new materials?
• Which code would you expect for a building with exterior walls made of metal or other non-combustible material?
• The majority of aircraft accidents are attributed to pilot error.
• Which of the following are standpoints from which insurance can be defined?
• Which of the following is a channel through which insurance policies are distributed?
• Universal life insurance was introduced in 1979.
• Which of the following is a factor that affects the rates set for an airline placement?
• Which term describes an insurance contract feature that tends to favor the insurer when policy language is ambiguous?
• What is the process of deciding whether to accept or reject an application for insurance?
• Which type of miscellaneous property coverage covers the insured's interest in a building that is occupied, but not owned by the insured?
• Which policy structure is designed to meet industry-specific needs by bundling multiple coverages into one contract?
• Who formed the group approach to underwriting and the United States Aviation Underwriters, Inc?
• Which of the following is NOT a main defense developed for employers' protection?
• Which act delineates the responsibilities of the NTSB, other governmental agencies, and the airlines in the event of an aircraft accident resulting in major loss of life?
• Which policy section provides the basic information about the insured, the risk, and the policy period?
• Which segment addresses liability to third parties in aerial application while excluding chemical liability?
• Which of the following is a basic approach to handling risks?
• Which policy type is used to insure business-owned vehicles?
• Which factor is underwriters concerned with when evaluating helicopter risks?
• Which of the following states that a cause of action for personal or other injury shall not abate because of the death of a party?
• Where would Mike check his policy to see if his friend is covered?
• The growth of aviation insurance has paralleled the growth of the aviation industry itself.
• Which coverage reimburses the insured for the cost of renting a substitute aircraft during repairs after an accident?
• What is the name of the only direct writing company?
• What type of coverage has the purpose of protecting the owner or operator of an airport against loss due to legal liability from maintenance or use of the airport and all operations at or away from it?
• Which statement about the space underwriting timing is true?
• Which defense contends that an employee's own negligence can bar recovery from the employer?
• What policy pays the pilot a predetermined amount per month after a waiting period, serving as a deductible, until the pilot recovers?
• Which of the following are among the most common methods of how the premises premium is computed?
• In property and casualty insurance, who is a representative of an insurer delegated authority through an agency contract to act on behalf of the insurer?
• What is the temporary contract, pending the issuance of the actual policy?
• Which major aviation insurer's policies are issued through American Home Assurance Company, National Union Fire Insurance Company of Pittsburgh, The Insurance Company of the State of Pennsylvania, and the New Hampshire Insurance Company?
• Under the spares endorsement, the insurer will cover any consequential loss of any nature.
• An oil gauge that is inadequate to warn of a dangerously low oil level is an example of what?
• What term refers to the function of substituting certainty for uncertainty in one's personal or business activities?
• Which policy element would you review to understand how endorsements can modify existing coverage?
• Which endorsement applies to agricultural aircraft and excludes chemical drift from coverage?
• Which statement accurately reflects typical airport liability policy conditions?
• What are the retirement vehicles that allow employees to save for their own retirements?
• Hangarkeepers' liability coverage limits include which of the following?
• The first space insurance policy was written in 1965.
• Corporate operated aircraft flown by professional pilots employed exclusively for the purpose of operating and managing the aircraft are described as what?
• What is the right of the insurer, after paying the insured for a covered loss, to take over all the insured's legal rights against negligent third parties?
• If an airplane is damaged by a windstorm, the time and effort to arrange repairs, the loss of use, and the additional cost of renting a substitute airplane are called what?
• Which term describes the portion of risk transferred from the primary insurer to another company under a reinsurance agreement?
• Which exposures may be caused by pure risks?
• Replacement services in PIP coverage refer to which of the following examples?
• Which of the following bundles multiple coverages into a single policy to specifically meet the needs of various industries and business operations?
• Beebe and Chambers are best known for forming which industry development in aviation underwriting?
• What term identifies the possibility that a particular property or person may suffer loss from a specific peril?
• Do most airport liability contracts include the exclusion 'Operations on or from other premises which are owned, rented or controlled by the insured' ?
• Which of the following is NOT a commonly listed factor affecting an aircraft's susceptibility to loss?
• Which factor relates to capital availability in airline risk transfer?
• Which of the following is a criterion used in the process of airline risk selection?
• Which characteristic of the insurance contract has legal importance because the applicant for insurance does not draft the policy language and ambiguities are interpreted against the insurer?
• What is the term for the pricing of insurance?
• The operation of aircraft to include those persons who authorize operation by others is defined by which act?
• The cost of relocating operations during a loss is generally categorized as which type of expense?
• Airport-based, commercial operations which provide line services, aircraft and engine maintenance, sale of parts and accessories, aircraft sales, charter and rental of aircraft, corporate flight services, and flight training are called what?
• General Dynamics is associated with acquiring which aviation company in 1985?
• Private passenger automobiles, trucks, and specialty vehicles owned or leased to partnerships and corporations must be insured under what?
• Which of the following are included in aircraft products coverage?
• Under which rule may a plaintiff recover for emotional distress if the plaintiff was in personal danger of impact due to the defendant's negligence?
• Which building construction code includes buildings where the exterior walls and the floors and roof are constructed of masonry or fire resistive materials having a fire resistance rating of not less than two hours?
• Which of the following is a benefit provided by workers' compensation laws?
• The Proton K/M, Zenit 3SL, and PSLV are launch vehicles.
• Industrial aid use category places emphasis on which underwriting consideration?
• Which statement correctly describes a major section of the standard automobile policy?
• Which agency is primarily responsible for investigating aircraft accidents?
• Which policy section describes how endorsements modify the policy?
• Loss activity in the segment is a factor affecting airline rates.
• Which policy provides protection for pilots and crew members while flying, servicing, or repairing any aircraft in the event of an accident?
• Which act prohibits lawsuits against aircraft manufacturers for aircraft more than 18 years old?
• The Barber and Baldwin Agency's legacy is tied to which sector?
• Which term refers to charging insurance based on risk data?
• Tenants Improvements and Betterments insurance is designed to protect which of the following?
• How many total member companies did the Aerospace Industries Association have at the beginning of 2005?
• Which major aviation insurer was formerly Aviation & Marine Insurance Group?
• Who acquired Cessna in 1985?
• What step of the risk management process follows reviewing techniques for handling loss exposures?
• Torts are based on which of the following?
• In Hangarkeepers' liability coverage, the per occurrence limit applies to losses from which?
• Where does Mike find what he must do in the event of a covered loss?
• Which code describes exterior walls and floors/roof masonry or fire-resistive materials with a two-hour fire resistance rating?
• Which category of use includes leasing aircraft to renter pilots and giving flight instruction to student pilots and others?
• Which classical tort concept involves damages awarded for non-economic harms under specific rules, such as the zone of danger?
• The cost of moving to temporary quarters, renting the quarters, and renting the necessary business equipment are examples of what?
• How many airlines are operating around the world today?
• Which term describes the most comprehensive hull coverage across both ground and flight phases?
• Most jurisdictions have adopted which standard when breach of warranty issues are the basis for a lawsuit?
• Which organization had 96 regular and 182 associate member companies at the beginning of 2005?
• Which of the following is among the most popular employee benefit coverages?
• Which choice for arriving at an insurable value includes actual cash value?
• Which discipline involves systematically identifying exposures and deciding on the best methods to handle them in relation to profitability?
• Which building construction code includes buildings where the exterior walls are constructed of and supported by metal, asbestos, gypsum, or other non-combustible materials?
• What is the current approximate number of airlines operating worldwide according to the material?
• For fixed-base operators, which exposure area consists primarily of office, ramp, and ongoing operations exposures?
• The 18-year statute of repose on civil actions against manufacturers is part of which act?
• Which risk classification is caused by the normal perils of nature and the dishonesty of other individuals, and involves either damage to an asset or a change in possession due to dishonesty or human failure?
• Which statement accurately describes mergers or acquisitions in the aviation insurance industry in the early 1980s?
• Which concept for insurable value reflects real-world market prices rather than replacement cost?
• Personal injury protection typically covers which of the following?
• Which type of auto coverage covers 80% of reasonable medical expenses, 60% of lost wages and replacement services, and 5,000% for death benefits?
• Which aviation activity involves releasing materials from aircraft for purposes such as crop production and health control?
• A wrongful death statute permits recovery of damages to the decedent's estate rather than damages incurred by survivors. True or false?
• Which major aviation insurer has a corporate name that includes Aviation, Inc in its title?
• Firms which are aggressive and willing to take risks tend to favor which type of pension plan?
• Which term describes the event of substituting certainty for uncertainty through a contract that transfers risk?
• What is the name of any object orbiting another in space such as a planet, or a man-made object orbiting the earth for commercial purposes?
• Which of the following is a prerequisite to an enforceable contract?
• What is the primary responsibility of the pilot?
• Which organization did Beebe and Chambers help form?
• What is the deliberate attempt to mislead or cheat a third party?
• How many general aviation aircraft were delivered in 1994?
• What type of contract establishes that the values exchanged by the contracting parties are not necessarily equal?
• Which of the following best describes pilot accident insurance?
• Which of the following is a factor that can affect an aircraft's susceptibility to loss?
• Which factor is explicitly identified as affecting an aircraft's susceptibility to loss?
• Which of the following are segments of coverage of aerial application aircraft?
• What deals with the systematic identification of a company's exposures to the risk of loss, and with decisions on the best methods for handling these exposures in relation to corporate profitability?
• What takes place when one party to a contract refuses to fulfill his part of the bargain?
• The Proton K/M, Zenit 3SL, and PSLV are examples of what?
• Which of the following are exposures that may be caused by pure risks?
• In 1985 how many private suits were tried in state courts?
• In a reinsurance arrangement, who agrees to accept the portion of the risk beyond the ceding company's retention?
• Which coverage is intended to protect against drift onto crops owned by the same farmer to whom the applicator is sprayed?
• Which of the following are conditions included in most airport liability policies?
• Which part of the policy would determine if a maintenance-facility test flight is covered?
• Which term describes an intentional deception to gain an advantage in a transaction?
• Which of the following makes up the first part of the insurance policy and includes the descriptive material relating to the risk?
• Which of the following is a principal area of concern for underwriters when evaluating risk?
• Which of the following is a way the risk management process can be viewed?
• What is the more common name for guest voluntary settlement?
• Torts are based on which of the following?
• In crop-dusting insurance terminology, what does the abbreviation CC stand for?
• Under which clause does the insured agree to maintain insurance equal to some selected percentage of value of the property?
• Which risk control objective focuses on reducing the severity of losses after they have occurred?
• What is the common denominator that allows insurers to classify risks and make comparisons?
• Which basis for purchasing insurance is defined as the cost to replace the property today with new materials of like kind and quality?
• Which major aviation insurer is described as augmented by a Special Risk Department?
• What type of miscellaneous property coverage protects a lessee who has no insurable interest in the owner’s property except for legal liability for damage to the owner’s property?
• Which items are included in aircraft products coverage?
• What type of coverage provides protection against loss of or damage to their owned or leased aircraft?
• Which company was the first to write aviation insurance in the post-World War I period?
• Where would Mike learn about subrogation?
• Which form of coverage is the most inclusive and most commonly written?
• Which of the following is NOT a segment of coverage for aerial application aircraft?
• What is the long-run relative frequency of a loss?
• The Barber and Baldwin Agency remained in business until which year?
• After paying the insured for a covered loss, the insurer's right to take over all the insured's legal rights against negligent third parties is known as what?
• What term represents the combined total of monetary losses that can be inferred from the facts of a case?
• What type of airports are generally located on the outskirts of a metropolitan area and serve as the general aviation airport for the community?
• Which coverage is designed to pay for occurrences caused by mistakes in the manufacture or preparation of products or the rendering of service work?
• Which hull coverage is the broadest, covering both ground and flight?
• Which of the following would be considered a principal area of concern for underwriters when evaluating risk?
• Aero Insurance Underwriters are successors to which firm?
• In single limit liability, liability coverage provides one limit for which categories?
• In which decade did the first combined hull and liability policies appear?
• Which act limited manufacturers' liability by placing a time limit of 18 years on civil actions against a manufacturer?
• When did the first combined aircraft hull and liability policies appear?
• Universal life insurance was introduced in what year?
• Which endorsement related to hull coverage limits the amount paid for repairs to or replacement of certain important parts to specified percentages of the insured amount?
• Insurance agency relationships are based upon and governed by what?
• Which retirement vehicle is a common employer-sponsored plan for employee savings?
• What type of coverage provides coverage for drift onto crops owned by the same farmer the applicator is contracted to spray for?
• Which endorsement type is used to protect the insurer from the added risks associated with a building that is empty?
• Which of the following services is not typically provided by fixed base operators?
• Which risk control method has the objective of reducing the severity of losses once they have occurred?
• What is the typical length of a crop-dusting season?
• A 401(k) plan is best described as which of the following?
• Which policy section lists the insured, the policy limits, and the premium?
• Who is a world leader insuring approximately 20 percent of the world's aviation business and war risks?