Chapter 09: Professional Liability Insurance

Chapter 09: Professional Liability Insurance

 

Complete Chapter Questions With Answers

 

Sample Questions Are Posted Below

 

MULTIPLE CHOICE

 

1. Which statement regarding individual liability insurance policies is correct?

a.	A personal liability policy is not necessary if the healthcare professional is employed in any capacity at a healthcare facility, because the facility’s policy will cover his or her actions.
b.	A person who does not own any property does not have anything to protect and therefore does not need a liability policy.
c.	Independent contractors may require individual liability coverage even though he or she may be covered under a healthcare facility’s policy.
d.	An independent contractor would not be sued and therefore does not need liability coverage.

 

 

ANS:  C

In general, facilities do not have liability coverage for independent contractors, and the individual should secure coverage to protect personal assets.

 

DIF:    Cognitive Level: Comprehension     REF:   pp. 134-135

 

2. The prime objective of obtaining liability coverage is to:

a.	avoid patient malpractice lawsuits.
b.	protect assets in the event of a settlement in the claimant’s favor.
c.	avoid paying malpractice claims.
d.	provide protection against high legal costs.

 

 

ANS:  B

The prime objective of obtaining liability coverage is to protect assets in the event of a judgment or settlement in favor of the claimant in a professional liability case.

 

DIF:    Cognitive Level: Knowledge            REF:   p. 134

 

3. Which individual is probably an independent contractor?

a.	A private nurse who sits with a patient just moved from intensive care
b.	A registered nurse who works a weekend double shift only
c.	A laboratory employee who works inside a hospital but is employed by an independent lab
d.	A physician who visits his or her patients during rounds in a hospital

 

 

ANS:  A

An independent contractor is a person who is self-employed and who enters contracts to provide professional services to various entities, such as hospitals, physicians’ offices, or individual clients. A private nurse is not employed by a hospital and would therefore be an independent contractor.

 

DIF:    Cognitive Level: Comprehension     REF:   p. 135

 

4. Most physicians’ offices carry a liability policy. Which would not be covered under the policy?

a.	Physician
b.	Medical assistant
c.	Patient
d.	Receptionist

 

 

ANS:  C

An office liability policy usually covers all employees, even those not involved directly in patient care. Patients are not included in liability policies.

 

DIF:    Cognitive Level: Comprehension     REF:   pp. 134-135

 

5. What is the best reason to carry a personal professional liability policy?

a.	It saves the physician money.
b.	It ensures that the insurer maintains loyalty to its own insured.
c.	It is inexpensive.
d.	It is guaranteed payment of liability claims.

 

 

ANS:  B

Each person wants to protect his or her own interests during the course of a dispute over professional liability. Having an individual policy ensures that the insurer and the related attorneys have loyalty to the individual policyholder and will design a defense strategy in the policyholder’s best interests.

 

DIF:    Cognitive Level: Comprehension     REF:   pp. 136-137