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
A farm owner's dog bites a mail carrier. Which part of the farm policy would typically respond to this claim?
Answer: Section II personal liability coverage
Dog bites causing bodily injury to third parties are personal liability events covered under Section II of the farm owner's policy.
Which doctrine holds a farmer strictly liable for damage caused by livestock that escape and damage a neighbor's property, regardless of the farmer's negligence?
Answer: Strict liability for animals
Strict liability for animals (roaming livestock) means a farm owner can be held liable for damage caused by escaped livestock without the injured party proving negligence.
A farm purchases a $1 million farm liability policy with a $300 underlying aggregate. A $1.5 million judgment is entered. How much must the farm owner pay out of pocket if they also have a $1 million umbrella?
Answer: $0
The primary policy pays $1 million and the umbrella pays the remaining $500,000, covering the full $1.5 million judgment with no out-of-pocket cost to the insured.
What is 'occurrence' versus 'claims-made' coverage, and which is more common for farm liability policies?
Answer: Occurrence is standard for farm liability; claims-made is more common for professional liability
Farm liability policies are typically written on an occurrence basis, meaning coverage applies to incidents that happen during the policy period regardless of when the claim is filed.
An AFIS specialist reviews a policy for a farm that also has a small custom harvesting business serving neighboring farms. What critical endorsement may be needed?
Answer: Custom farming liability endorsement for operations on others' premises
A custom farming (or 'incidental farming for others') endorsement extends farm liability coverage to include operations conducted on other farms for compensation, which standard farm policies typically exclude.
Why is it important for an AFIS specialist to review the 'insured' definition in a farm liability policy for a family farm operation?
Answer: To ensure all family members, employees, and entities (LLCs, partnerships) with farm exposure are properly included as insureds
The 'insured' definition determines who is protected; farm operations often involve multiple family members, hired workers, and business entities that must be specifically included to ensure full coverage.