AIC 301 REVIEW EXAMS UPDATED ALL QUESTIONS
AND ANSWERS SURE A+
✔✔What is a binder? - ✔✔A temporary agreement to provide insurance coverage until a
formal policy is issued.
✔✔What is a material fact? - ✔✔A fact that would influence a reasonable person's
decision.
✔✔What is a breach of contract? - ✔✔Failure to fulfill the obligations of a contract.
✔✔What is negligence? - ✔✔Failure to exercise reasonable care.
✔✔What is an equitable remedy? - ✔✔A remedy based on fairness and justice.
✔✔What is a covered loss? - ✔✔A loss that is included in the terms of an insurance
policy.
✔✔What is a formal written policy? - ✔✔A written document that outlines the terms of
an insurance policy.
✔✔What is a direct-action statute? - ✔✔A law that allows a negligence victim to sue an
insurer directly.
, ✔✔What is a waiver? - ✔✔The intentional relinquishment of a known right.
✔✔What is consideration? - ✔✔Something of value exchanged in a contract.
✔✔What is an election? - ✔✔The voluntary act of choosing between two alternatives.
✔✔What is bankruptcy? - ✔✔The body of federal law that allows debtors who are
unable to pay their creditors to divide their assets among their creditors to discharge the
debts.
✔✔What is a security interest? - ✔✔An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security interest was
given.
✔✔What is negligence? - ✔✔The failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to avoid harming others.
✔✔What is a tort? - ✔✔A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
✔✔Who is a tortfeasor? - ✔✔A person or an organization that has committed a tort.
✔✔Who is a plaintiff? - ✔✔The person or entity who files a lawsuit and is named as a
party.
✔✔Who is a defendant? - ✔✔The party in a lawsuit against whom a complaint is filed.
✔✔What is a legal duty? - ✔✔An element of negligence that exists when parties are in
such a relationship that the law imposes on one party the responsibility for the exercise
of care toward the other party.
✔✔What is a statute? - ✔✔A written law passed by a legislative body at either the
federal or state level.
✔✔What is common law (case law)? - ✔✔Laws that develop out of court decisions in
particular cases and establish precedents for future cases.
✔✔What is a legally binding contract? - ✔✔A contract that obligates parties to fulfill an
agreement.
✔✔What is an exculpatory clause? - ✔✔A provision that excuses a party from liability.
AND ANSWERS SURE A+
✔✔What is a binder? - ✔✔A temporary agreement to provide insurance coverage until a
formal policy is issued.
✔✔What is a material fact? - ✔✔A fact that would influence a reasonable person's
decision.
✔✔What is a breach of contract? - ✔✔Failure to fulfill the obligations of a contract.
✔✔What is negligence? - ✔✔Failure to exercise reasonable care.
✔✔What is an equitable remedy? - ✔✔A remedy based on fairness and justice.
✔✔What is a covered loss? - ✔✔A loss that is included in the terms of an insurance
policy.
✔✔What is a formal written policy? - ✔✔A written document that outlines the terms of
an insurance policy.
✔✔What is a direct-action statute? - ✔✔A law that allows a negligence victim to sue an
insurer directly.
, ✔✔What is a waiver? - ✔✔The intentional relinquishment of a known right.
✔✔What is consideration? - ✔✔Something of value exchanged in a contract.
✔✔What is an election? - ✔✔The voluntary act of choosing between two alternatives.
✔✔What is bankruptcy? - ✔✔The body of federal law that allows debtors who are
unable to pay their creditors to divide their assets among their creditors to discharge the
debts.
✔✔What is a security interest? - ✔✔An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security interest was
given.
✔✔What is negligence? - ✔✔The failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to avoid harming others.
✔✔What is a tort? - ✔✔A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
✔✔Who is a tortfeasor? - ✔✔A person or an organization that has committed a tort.
✔✔Who is a plaintiff? - ✔✔The person or entity who files a lawsuit and is named as a
party.
✔✔Who is a defendant? - ✔✔The party in a lawsuit against whom a complaint is filed.
✔✔What is a legal duty? - ✔✔An element of negligence that exists when parties are in
such a relationship that the law imposes on one party the responsibility for the exercise
of care toward the other party.
✔✔What is a statute? - ✔✔A written law passed by a legislative body at either the
federal or state level.
✔✔What is common law (case law)? - ✔✔Laws that develop out of court decisions in
particular cases and establish precedents for future cases.
✔✔What is a legally binding contract? - ✔✔A contract that obligates parties to fulfill an
agreement.
✔✔What is an exculpatory clause? - ✔✔A provision that excuses a party from liability.
