ARM 402 Ch 3 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
The intentional relinquishment Waiver
of a known right.
A contractual provision Exculpatory clause (exculpatory
purporting to excuse a party agreement)
from liability resulting from
negligence or an otherwise
wrongful act.
A contractual provision that Hold-harmless agreements
obligates one of the parties to
assume the legal liability of
another party.
General Contractor agrees to Limited Form
indemnify Building Owner only
for claims that result from
General Contractor's own
negligence, often referred to
as sole fault.
General Contractor agrees to Intermediate form
indemnify Building Owner only
for claims that result from
General Contractor's sole fault
or from both parties' joint
fault.
, General Contractor agrees to Broad form
indemnify Building Owner for
losses that result from General
Contractor's sole fault, both
parties' joint fault, or Building
Owner's sole fault.
An amount over and above the Risk charge
expected loss component of
the premium to compensate
the insurer for taking the risk
that losses may be higher than
expected.
Information used as a basis for Risk Criteria
measuring the significance of
a risk.
A rating plan that adjusts the Retrospective Rating Plan
insured's premium for the
current policy period based on
the insured's loss experience
during the current period; paid
losses or incurred losses may
be used to determine loss
experience.
A rating plan that adjusts the Experience Rating
premium for the current policy
period to recognize the loss
experience of the insured
organization during past policy
periods.
Answers with Verified Solutions | Latest
Updated 2026
The intentional relinquishment Waiver
of a known right.
A contractual provision Exculpatory clause (exculpatory
purporting to excuse a party agreement)
from liability resulting from
negligence or an otherwise
wrongful act.
A contractual provision that Hold-harmless agreements
obligates one of the parties to
assume the legal liability of
another party.
General Contractor agrees to Limited Form
indemnify Building Owner only
for claims that result from
General Contractor's own
negligence, often referred to
as sole fault.
General Contractor agrees to Intermediate form
indemnify Building Owner only
for claims that result from
General Contractor's sole fault
or from both parties' joint
fault.
, General Contractor agrees to Broad form
indemnify Building Owner for
losses that result from General
Contractor's sole fault, both
parties' joint fault, or Building
Owner's sole fault.
An amount over and above the Risk charge
expected loss component of
the premium to compensate
the insurer for taking the risk
that losses may be higher than
expected.
Information used as a basis for Risk Criteria
measuring the significance of
a risk.
A rating plan that adjusts the Retrospective Rating Plan
insured's premium for the
current policy period based on
the insured's loss experience
during the current period; paid
losses or incurred losses may
be used to determine loss
experience.
A rating plan that adjusts the Experience Rating
premium for the current policy
period to recognize the loss
experience of the insured
organization during past policy
periods.
