Free CRIS Insurance Policies & Contractual Risk Transfer Questions and Answers

Question 1

What is the purpose of insurance policies in construction?

Accepted Answer

Protect against financial loss

Answer

To increase project costs.

Answer

Delay construction.

Answer

Avoid contract signing.

Question 2

What does contractual risk transfer involve?

Accepted Answer

Shifting risk responsibilities

Answer

Ignoring risk.

Answer

Increasing project scope.

Answer

Delaying payments.

Question 3

Which type of insurance covers third-party injuries?

Accepted Answer

Liability insurance

Answer

Property insurance.

Answer

Auto insurance.

Answer

Health insurance.

Question 4

What is an indemnity clause in contracts?

Accepted Answer

Compensate for losses

Answer

A penalty for late work.

Answer

A contract termination.

Answer

A payment schedule.

Question 5

Why is understanding insurance policy limits important?

Accepted Answer

Defines maximum coverage

Answer

To ignore coverage.

Answer

To increase premiums.

Answer

To delay claims.

Question 6

How do hold harmless agreements function?

Accepted Answer

Protect from liability

Answer

Assign responsibility.

Answer

Increase risk.

Answer

Ignore contracts.

Question 7

Which insurance is typically required for subcontractors?

Accepted Answer

General liability insurance

Answer

Health insurance.

Answer

Life insurance.

Answer

Travel insurance.

Question 8

What is subrogation in insurance terms?

Accepted Answer

Insurer recovers costs

Answer

The insured's right to sue.

Answer

Policy cancellation.

Answer

Claim denial.

Question 9

Why is reviewing contracts critical in risk transfer?

Accepted Answer

Ensure proper risk allocation

Answer

To ignore risk.

Answer

To delay projects.

Answer

To reduce premiums.