CPCU 552 All definitions Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
1. Liability Loss Any loss that a person or an organization
sustains
as a result of a claim or suit against that
person or
organization by someone seeking
damages or
some other remedy permitted by law
1. Legal Liability legally enforceable obligation of a person
or an
organization to pay a sum of money
(damages) to
another person or organization
1. Civil law classification of law that applies to legal
matters
not governed by criminal law and that
protects
rights and provides remedies for breaches
of
duties owed to others
1. Criminal Law branch of the law that imposes penalties
for
wrongs against society
,1. Tort A wrongful act or an omission, other than a
crime
or a breach of contract that involves a
legally
protected right.
3 categories: 1)negligence, 2) intentional,
3) strict
liability
1. Strict Liability (absolute) Liability imposed by a court or by a statute
in the
absence of fault when harm results from
activities
or conditions that are extremely
dangerous,
unnatural, ultra hazardous, extraordinary,
abnormal
or inappropriate
1. Breach of contract failure, without legal excuse, to fulfill a
contractual
promise
1. Statute written law passed by a legislative body, at
either
the federal or state level
1. Common-law system legal system in which the body of law is
derived
more from court decisions as opposed to
statutes
or constitutions
, 1. Tort Law the branch of civil law that deals with civil
wrongs
other than breaches of contract
1. Statutory Law formal laws or statutes enacted by federal,
state or
local legislative bodies
1. tort - 4 elements 1. wrongful invasion(breach), 2. of a legally
protected right (duty), 3. resulting
in(caused) 4.
proximate or direct damages(damage)
1. warranty a promise made by a seller about its
product
2. Premise and Operations liability for Bodily Injury and Property
Liability Damage
caused by: (1) an accident occurring on
the
premise owned, leased, rented, (premise
liability)
(2) an accident away from the premise
caused by
the person/organizations ongoing
operations
(operations liability)
and Answers with Verified Solutions | Latest
Updated 2026
1. Liability Loss Any loss that a person or an organization
sustains
as a result of a claim or suit against that
person or
organization by someone seeking
damages or
some other remedy permitted by law
1. Legal Liability legally enforceable obligation of a person
or an
organization to pay a sum of money
(damages) to
another person or organization
1. Civil law classification of law that applies to legal
matters
not governed by criminal law and that
protects
rights and provides remedies for breaches
of
duties owed to others
1. Criminal Law branch of the law that imposes penalties
for
wrongs against society
,1. Tort A wrongful act or an omission, other than a
crime
or a breach of contract that involves a
legally
protected right.
3 categories: 1)negligence, 2) intentional,
3) strict
liability
1. Strict Liability (absolute) Liability imposed by a court or by a statute
in the
absence of fault when harm results from
activities
or conditions that are extremely
dangerous,
unnatural, ultra hazardous, extraordinary,
abnormal
or inappropriate
1. Breach of contract failure, without legal excuse, to fulfill a
contractual
promise
1. Statute written law passed by a legislative body, at
either
the federal or state level
1. Common-law system legal system in which the body of law is
derived
more from court decisions as opposed to
statutes
or constitutions
, 1. Tort Law the branch of civil law that deals with civil
wrongs
other than breaches of contract
1. Statutory Law formal laws or statutes enacted by federal,
state or
local legislative bodies
1. tort - 4 elements 1. wrongful invasion(breach), 2. of a legally
protected right (duty), 3. resulting
in(caused) 4.
proximate or direct damages(damage)
1. warranty a promise made by a seller about its
product
2. Premise and Operations liability for Bodily Injury and Property
Liability Damage
caused by: (1) an accident occurring on
the
premise owned, leased, rented, (premise
liability)
(2) an accident away from the premise
caused by
the person/organizations ongoing
operations
(operations liability)
