RMI 2101 PRACTICE ALL 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔Defenses To Liability:
Comparative/Contributory Negligence - ✔✔plantiff was partially to blame for what
happened
✔✔RES IPSA LOQUITOR Doctrine - ✔✔"The thing speaks for itself" no direct evidence
the fact of injury is enough evidence
Requirements:
Normally wouldn't occur w/o negligence
Injured party doesn't contribute to loss
✔✔Defenses To Liability:
Vicarious Liability - ✔✔when one person becomes legal liable for the negligent behavior
of another
-employers are held liable for actions of employees acting within capacity of being an
employee
✔✔Joint & Several Liability - ✔✔negligence of 2 or more parties contribute to the injury
-injured party may recover entire amt of compensation who is able to pay--> regardless
of negligence
"search for deep pockets"
✔✔Pre-Loss Goals - ✔✔Economy of operations: program must be economically
efficient
Tolerable Uncertainty:keeping managers unsure about losses at tolerable levels
Legality:standard of care is owed legally
Social Responsibility: ethically fulfilling the economy
✔✔Post-Loss Goals - ✔✔Survival: staying alive, resuming operations
Continuity of Operations: able to keep functioning
Profitability: making minimum profit
Earning's Stability: no spikes, forecasting costs
Social responsibility
Growth
✔✔Product Liability - ✔✔manufacturers of a faulty product that injures or damages
someone may be held liable
, ex. McDonald's hot coffee
✔✔Negligence - ✔✔a product is negligently made or improperly designed
proper warning isn't given to the consumer
✔✔Product Liability Losses: - ✔✔cost of defending and paying for claims
cost of recalls
damage to brand name
✔✔Premises Liability - ✔✔how you could be held liable for your guests
if property of others is damaged as a result arising from your premises
✔✔Trespasser - ✔✔someone illegall on property w/o consent or right
-property must be free from INTENTIONAL HARM
✔✔Licensee - ✔✔comes to property w/ knowledge of owner, but no purpose or benefit
ex. police, GirlScouts, mailman
MUST WARN OF HIDDEN DANGERS
✔✔Social Guests/Invitees - ✔✔if anyone is invited for a PURPOSE and ANYTHING
happens, you are liable!!! can even sue co-signers
-tenant policy can protect
✔✔Animal Liability - ✔✔strict liability for exotic animals
you are liable no matter what
✔✔Traditional Risk Management - ✔✔Property
Net Income
Personnel Liability
silo approach- each sector focuses on own risks
-purely insurable risks
quadrant one: hazard risks
✔✔Silos - ✔✔Property/liability risks (hazard risks)
Personell risk: HR
Operational Risk: COO
Financial Risk: CEO
each individual
✔✔Enterprise Risk Management - ✔✔risk-based approach
-entire org. not just individual depts.
very strategic approach
4 Quadrants
1) Hazard Risks- generally pure ex. fire flood
2) Financial Risks- mostly speculative ex. inflation
ANSWERS RATED A+
✔✔Defenses To Liability:
Comparative/Contributory Negligence - ✔✔plantiff was partially to blame for what
happened
✔✔RES IPSA LOQUITOR Doctrine - ✔✔"The thing speaks for itself" no direct evidence
the fact of injury is enough evidence
Requirements:
Normally wouldn't occur w/o negligence
Injured party doesn't contribute to loss
✔✔Defenses To Liability:
Vicarious Liability - ✔✔when one person becomes legal liable for the negligent behavior
of another
-employers are held liable for actions of employees acting within capacity of being an
employee
✔✔Joint & Several Liability - ✔✔negligence of 2 or more parties contribute to the injury
-injured party may recover entire amt of compensation who is able to pay--> regardless
of negligence
"search for deep pockets"
✔✔Pre-Loss Goals - ✔✔Economy of operations: program must be economically
efficient
Tolerable Uncertainty:keeping managers unsure about losses at tolerable levels
Legality:standard of care is owed legally
Social Responsibility: ethically fulfilling the economy
✔✔Post-Loss Goals - ✔✔Survival: staying alive, resuming operations
Continuity of Operations: able to keep functioning
Profitability: making minimum profit
Earning's Stability: no spikes, forecasting costs
Social responsibility
Growth
✔✔Product Liability - ✔✔manufacturers of a faulty product that injures or damages
someone may be held liable
, ex. McDonald's hot coffee
✔✔Negligence - ✔✔a product is negligently made or improperly designed
proper warning isn't given to the consumer
✔✔Product Liability Losses: - ✔✔cost of defending and paying for claims
cost of recalls
damage to brand name
✔✔Premises Liability - ✔✔how you could be held liable for your guests
if property of others is damaged as a result arising from your premises
✔✔Trespasser - ✔✔someone illegall on property w/o consent or right
-property must be free from INTENTIONAL HARM
✔✔Licensee - ✔✔comes to property w/ knowledge of owner, but no purpose or benefit
ex. police, GirlScouts, mailman
MUST WARN OF HIDDEN DANGERS
✔✔Social Guests/Invitees - ✔✔if anyone is invited for a PURPOSE and ANYTHING
happens, you are liable!!! can even sue co-signers
-tenant policy can protect
✔✔Animal Liability - ✔✔strict liability for exotic animals
you are liable no matter what
✔✔Traditional Risk Management - ✔✔Property
Net Income
Personnel Liability
silo approach- each sector focuses on own risks
-purely insurable risks
quadrant one: hazard risks
✔✔Silos - ✔✔Property/liability risks (hazard risks)
Personell risk: HR
Operational Risk: COO
Financial Risk: CEO
each individual
✔✔Enterprise Risk Management - ✔✔risk-based approach
-entire org. not just individual depts.
very strategic approach
4 Quadrants
1) Hazard Risks- generally pure ex. fire flood
2) Financial Risks- mostly speculative ex. inflation
