CPCU 553 Personal Insurance exam |\ |\ |\ |\ |\
with answers |\
Loss exposure - CORRECT ANSWERS ✔✔Any condition or situation
|\ |\ |\ |\ |\ |\ |\ |\
that presents a possibility of loss, whether or not an actual loss
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
occurs.
Cause of loss (peril) - CORRECT ANSWERS ✔✔The actual means
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
by which property is damaged or destroyed.
|\ |\ |\ |\ |\ |\
Property loss exposure - CORRECT ANSWERS ✔✔A condition that
|\ |\ |\ |\ |\ |\ |\ |\ |\
presents the possibility that a person or an organization will
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sustain a loss resulting from damage (including destruction,
|\ |\ |\ |\ |\ |\ |\ |\
taken, or loss of use) to property in which that person or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
organization has a financial interest. |\ |\ |\ |\
Real property (realty) - CORRECT ANSWERS ✔✔Tangible property
|\ |\ |\ |\ |\ |\ |\ |\
consisty of land, all structures permanently attached to the land,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and whatever is growing on the land.
|\ |\ |\ |\ |\ |\
Personal property - CORRECT ANSWERS ✔✔All tangible or
|\ |\ |\ |\ |\ |\ |\ |\
intangible property that is not real property.|\ |\ |\ |\ |\ |\
Liability loss exposure - CORRECT ANSWERS ✔✔Any condition or
|\ |\ |\ |\ |\ |\ |\ |\ |\
situation that presents the possibility of a claim alleging legal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
responsibility of a person or business for injury or damage |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
suffered by another party. |\ |\ |\
,Damages - CORRECT ANSWERS ✔✔Money claimed by, or a |\ |\ |\ |\ |\ |\ |\ |\ |\
monetary award to, a party who has suffered bodily injury or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property damage for which another party is legally responsible.
|\ |\ |\ |\ |\ |\ |\ |\
General damages - CORRECT ANSWERS ✔✔A monetary award to
|\ |\ |\ |\ |\ |\ |\ |\ |\
compensate a victim for losses, such as pain and suffering, that |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
do not involve specific measurable expenses.
|\ |\ |\ |\ |\
Special damages - CORRECT ANSWERS ✔✔A form of
|\ |\ |\ |\ |\ |\ |\ |\
compensatory damages that awards a sum of money for specific, |\ |\ |\ |\ |\ |\ |\ |\ |\
identifiable expenses associated with the injured person's loss,
|\ |\ |\ |\ |\ |\ |\ |\ |\
such as medical expenses or lost wages.
|\ |\ |\ |\ |\ |\
Punitive damages (exemplary damages) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔A payment awarded by a court to punish a defendant for a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reckless, malicious, or deceitful act to deter similar conduct; the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
award need not bear any relation to a party's actual damages.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Civil law - CORRECT ANSWERS ✔✔A 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. |\ |\
Tort - CORRECT ANSWERS ✔✔A wrongful act or an ommission,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
other than a crime or a breach of contract, that invades a legally
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
protected right. |\
, Negligence - CORRECT ANSWERS ✔✔The failure to exercise the
|\ |\ |\ |\ |\ |\ |\ |\ |\
degree of care that a reasonable person in a similar situation
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
would exercise to avoid harming others.
|\ |\ |\ |\ |\
Personal financial planning loss exposures - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Life, health, and retirement related loss exposures
|\ |\ |\ |\ |\ |\
Temporary partial disability (TPD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that
|\ |\ |\ |\ |\ |\ |\ |\ |\
temporarily limits the extent to which a worker can perform job
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
duties; the worker is eventually able to return to full duties and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
hours.
Temporary total disability (TTD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that
|\ |\ |\ |\ |\ |\ |\ |\ |\
temporarily renders an injured worker unable to perform any job
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
duties for a period of time; the worker eventually makes a full
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recovery and can resume all job duties.
|\ |\ |\ |\ |\ |\
Permanent partial disability (PPD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that impairs
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the injured employee's earning capacity for life, but the
|\ |\ |\ |\ |\ |\ |\ |\ |\
employee is able to work at reduce efficiency.
|\ |\ |\ |\ |\ |\ |\
Permanent total disability (PTD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that renders
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an injured employee unable to ever return to gainful
|\ |\ |\ |\ |\ |\ |\ |\ |\
employment.
with answers |\
Loss exposure - CORRECT ANSWERS ✔✔Any condition or situation
|\ |\ |\ |\ |\ |\ |\ |\
that presents a possibility of loss, whether or not an actual loss
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
occurs.
Cause of loss (peril) - CORRECT ANSWERS ✔✔The actual means
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
by which property is damaged or destroyed.
|\ |\ |\ |\ |\ |\
Property loss exposure - CORRECT ANSWERS ✔✔A condition that
|\ |\ |\ |\ |\ |\ |\ |\ |\
presents the possibility that a person or an organization will
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sustain a loss resulting from damage (including destruction,
|\ |\ |\ |\ |\ |\ |\ |\
taken, or loss of use) to property in which that person or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
organization has a financial interest. |\ |\ |\ |\
Real property (realty) - CORRECT ANSWERS ✔✔Tangible property
|\ |\ |\ |\ |\ |\ |\ |\
consisty of land, all structures permanently attached to the land,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and whatever is growing on the land.
|\ |\ |\ |\ |\ |\
Personal property - CORRECT ANSWERS ✔✔All tangible or
|\ |\ |\ |\ |\ |\ |\ |\
intangible property that is not real property.|\ |\ |\ |\ |\ |\
Liability loss exposure - CORRECT ANSWERS ✔✔Any condition or
|\ |\ |\ |\ |\ |\ |\ |\ |\
situation that presents the possibility of a claim alleging legal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
responsibility of a person or business for injury or damage |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
suffered by another party. |\ |\ |\
,Damages - CORRECT ANSWERS ✔✔Money claimed by, or a |\ |\ |\ |\ |\ |\ |\ |\ |\
monetary award to, a party who has suffered bodily injury or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property damage for which another party is legally responsible.
|\ |\ |\ |\ |\ |\ |\ |\
General damages - CORRECT ANSWERS ✔✔A monetary award to
|\ |\ |\ |\ |\ |\ |\ |\ |\
compensate a victim for losses, such as pain and suffering, that |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
do not involve specific measurable expenses.
|\ |\ |\ |\ |\
Special damages - CORRECT ANSWERS ✔✔A form of
|\ |\ |\ |\ |\ |\ |\ |\
compensatory damages that awards a sum of money for specific, |\ |\ |\ |\ |\ |\ |\ |\ |\
identifiable expenses associated with the injured person's loss,
|\ |\ |\ |\ |\ |\ |\ |\ |\
such as medical expenses or lost wages.
|\ |\ |\ |\ |\ |\
Punitive damages (exemplary damages) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔A payment awarded by a court to punish a defendant for a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reckless, malicious, or deceitful act to deter similar conduct; the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
award need not bear any relation to a party's actual damages.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Civil law - CORRECT ANSWERS ✔✔A 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. |\ |\
Tort - CORRECT ANSWERS ✔✔A wrongful act or an ommission,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
other than a crime or a breach of contract, that invades a legally
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
protected right. |\
, Negligence - CORRECT ANSWERS ✔✔The failure to exercise the
|\ |\ |\ |\ |\ |\ |\ |\ |\
degree of care that a reasonable person in a similar situation
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
would exercise to avoid harming others.
|\ |\ |\ |\ |\
Personal financial planning loss exposures - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Life, health, and retirement related loss exposures
|\ |\ |\ |\ |\ |\
Temporary partial disability (TPD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that
|\ |\ |\ |\ |\ |\ |\ |\ |\
temporarily limits the extent to which a worker can perform job
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
duties; the worker is eventually able to return to full duties and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
hours.
Temporary total disability (TTD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that
|\ |\ |\ |\ |\ |\ |\ |\ |\
temporarily renders an injured worker unable to perform any job
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
duties for a period of time; the worker eventually makes a full
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recovery and can resume all job duties.
|\ |\ |\ |\ |\ |\
Permanent partial disability (PPD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that impairs
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the injured employee's earning capacity for life, but the
|\ |\ |\ |\ |\ |\ |\ |\ |\
employee is able to work at reduce efficiency.
|\ |\ |\ |\ |\ |\ |\
Permanent total disability (PTD) - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
disability caused by a work-related injury or disease that renders
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an injured employee unable to ever return to gainful
|\ |\ |\ |\ |\ |\ |\ |\ |\
employment.
