Workers' Compensation and Other Property & Casualty Lines

Correct

The answer is C: $300,000

When the underlying general liability policy pays its $1 million limit, the umbrella pays the loss above it: $1.3 million less $1 million is $300,000. The $25,000 self-insured retention is what the insured bears on a loss the underlying policy does not cover; it does not reduce the excess payment here. The $25,000 figure is that retention, $1,000,000 is the underlying limit the primary policy pays, and $1,300,000 is the whole loss, which no single policy pays.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is B: Coverage for growing crops lost to drought or flooding.

A standard farmowners policy covers the dwelling, barns and other farm buildings, personal property, liability and, by schedule, farm equipment. It does not cover growing crops lost to drought or flooding: drought is not an insured peril and flood is excluded. Crop losses are insured under the federal crop insurance program, whose policies private insurers sell and the USDA Risk Management Agency backs. The liability to a visitor, scheduled equipment and a fire loss to a barn are all covered.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is A: FELA requires the employee to prove the railroad's negligence, whereas workers' compensation is no-fault.

The Federal Employers Liability Act lets a railroad employee sue the railroad for damages when the injury was caused in whole or in part by the railroad's negligence, so the employee must prove negligence. State workers' compensation is no-fault and pays benefits regardless of fault. FELA damages can include pain and suffering, so recovery is broader than workers' compensation, not limited to medical and wage loss, and FELA is federal law that applies to railroad employees nationwide, not just in Pennsylvania.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: $50,000

Actual cash value is replacement cost minus depreciation: $80,000 minus $30,000 is $50,000, which is the most the policy pays for a covered loss with no deductible. The $30,000 figure is the depreciation, $80,000 is the replacement cost that applies only on a replacement cost basis, and $110,000 adds depreciation to replacement cost, which runs the formula backward.

Reviewed in our October 2026 Pennsylvania fact-check.