AFIS Farm Liability and Legal Coverage Flashcards
6 cards from real AFIS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 AFIS Farm Liability and Legal Coverage flashcards as text
Which coverage is designed to protect a farm owner from liability claims exceeding the limits of the underlying farm liability and auto policies?
Answer: Farm umbrella liability policy
A farm umbrella liability policy provides an additional layer of liability coverage that kicks in when underlying policy limits are exhausted, protecting against catastrophic claims.
A crop duster hired by a farmer inadvertently sprays a neighbor's organic crop. The neighbor sues the farm owner claiming the farmer directed the application. Which coverage would respond first?
Answer: The farm owner's general liability coverage as the directing party
If the farm owner directed the pesticide application that caused the damage, the farm owner's general liability (or pollution liability) coverage would respond to the neighbor's claim.
What is 'farm pollution liability' coverage, and why is it important for agricultural operations?
Answer: Liability coverage for bodily injury or property damage caused by the discharge of pesticides, fertilizers, or animal waste
Farm pollution liability covers third-party claims arising from the accidental release of agricultural pollutants such as pesticides, fertilizers, or manure that escape the farm premises.
A farmer hosts an agri-tourism corn maze on the property. Which coverage gap should an AFIS specialist specifically address?
Answer: Agri-tourism liability endorsement for paying visitors
Standard farm policies may exclude or limit coverage for agri-tourism activities; an agri-tourism endorsement specifically covers liability for injuries to paying guests participating in farm events.
Under the 'business pursuits' exclusion in a farm liability policy, which activity would most likely be excluded?
Answer: Operating a commercial equipment repair shop in the farm garage
The business pursuits exclusion eliminates liability coverage for commercial business activities unrelated to farming, such as a repair shop; these require separate commercial coverage.
What is 'employer's liability' coverage in the context of a farm policy, and how does it differ from workers' compensation?
Answer: Workers' comp covers statutory employee benefits; employer's liability covers employee lawsuits against the employer not covered by workers' comp
Workers' compensation pays statutory benefits to injured employees; employer's liability protects the farm owner from employee lawsuits (e.g., third-party-over suits) that fall outside workers' comp exclusivity.