AIC 301 Version 1 - EXAMINATION COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
Question 1: Victoria dared her friend, Amy, to jump over a moving
car on her bicycle. Amy agreed, and Victoria drove the car. It did
not turn out well. The car was damaged, and Amy was injured.
Amy's lawyer predicted that she would be found 50 percent at fault.
Which one of the following comparative negligence rules would be
most helpful to Amy's case if she decided to sue Victoria? Select
one:
A. The 50 percent comparative negligence rule
B. The slight versus gross rule
C. The 49 percent comparative negligence rule
D. The contributory negligence rule
Answer:
A. The 50 percent comparative negligence rule. The 50 percent comparative negligence
rule would be the most helpful to Amy's case if she decided to sue Victoria, because it
would allow her to recover at least reduced damages up to the point at which the
plaintiff's negligence constitutes not more than 50 percent of the total.
Question 2: A special characteristic of an insurance policy is that it
is a nontransferable contract. This principle means that insureds
may not transfer or assign their insurance policies Select one:
A. Under any circumstances.
B. Except when directed to do so by the insurer.
C. Unless the insurer agrees to the assignment.
D. Except at expiration of the policy.
Answer:
C. Unless the insurer agrees to the assignment.
,Question 3: As an insurance legal professional, Mehmet
understands the importance of representations and warranties in
insurance policies. He knows that Select one:
A. Representations are written in the policy or incorporated by
reference, while warranties can be oral or written.
B. The law presumes representations to be material while warranties
must be proved to be material.
C. Representations require strict compliance, while warranties require
substantial truth.
D. Representations are indirect inducements to the contract, while
warranties are part of the final insurance contract.
Answer:
D. Representations are indirect inducements to the contract, while warranties are part of
the final insurance contract.
Question 4: Louis owns an island with a small cottage on it. He has
full ownership of the property and an unconditional right to sell it
or otherwise dispose of it. Louis has Select one:
A. An indenture.
B. A fee simple estate.
C. A tenancy by the entirety.
D. A life estate.
Answer:
B. A fee simple estate.
Question 5: Which one of the following elements must exist in
order to prove fraud? Select one:
A. A representation that was related to a past, existing, or future fact.
B. A representation, whether true or untrue, that was made
maliciously.
C. The intent of the representation was to influence or deceive.
, D. The plaintiff may or may not have acted anyway, but the
representation influenced the decision.
Answer:
C. The intent of the representation was to influence or deceive.
Question 6: Carla is an attorney in the legal department for an
insurer. She is drafting a document that details types of coverage
sought, object or premises to be insured, the amount of insurance,
the insured's name, and the duration of coverage. Carla is drafting
a(n) Select one:
A. Lawful objective.
B. Genuine assent.
C. Agreement to insure.
D. Offer to insure.
Answer:
C. Agreement to insure.
Question 7: While driving, Karl's foot slips off the brake and his car
rolls into the back of Sunny's vehicle. No one is hurt, but the
accident caused a large dent in the back bumper of Sunny's
vehicle. For which one of the following types of damages is Sunny
eligible? Select one:
A. General damages
B. Special damages
C. Incidental damages
D. Bad-faith damages
Answer:
B. Special damages
Question 8: In contract cases involving breach of duty of good
faith, which one of the following types of damages might a court
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
Question 1: Victoria dared her friend, Amy, to jump over a moving
car on her bicycle. Amy agreed, and Victoria drove the car. It did
not turn out well. The car was damaged, and Amy was injured.
Amy's lawyer predicted that she would be found 50 percent at fault.
Which one of the following comparative negligence rules would be
most helpful to Amy's case if she decided to sue Victoria? Select
one:
A. The 50 percent comparative negligence rule
B. The slight versus gross rule
C. The 49 percent comparative negligence rule
D. The contributory negligence rule
Answer:
A. The 50 percent comparative negligence rule. The 50 percent comparative negligence
rule would be the most helpful to Amy's case if she decided to sue Victoria, because it
would allow her to recover at least reduced damages up to the point at which the
plaintiff's negligence constitutes not more than 50 percent of the total.
Question 2: A special characteristic of an insurance policy is that it
is a nontransferable contract. This principle means that insureds
may not transfer or assign their insurance policies Select one:
A. Under any circumstances.
B. Except when directed to do so by the insurer.
C. Unless the insurer agrees to the assignment.
D. Except at expiration of the policy.
Answer:
C. Unless the insurer agrees to the assignment.
,Question 3: As an insurance legal professional, Mehmet
understands the importance of representations and warranties in
insurance policies. He knows that Select one:
A. Representations are written in the policy or incorporated by
reference, while warranties can be oral or written.
B. The law presumes representations to be material while warranties
must be proved to be material.
C. Representations require strict compliance, while warranties require
substantial truth.
D. Representations are indirect inducements to the contract, while
warranties are part of the final insurance contract.
Answer:
D. Representations are indirect inducements to the contract, while warranties are part of
the final insurance contract.
Question 4: Louis owns an island with a small cottage on it. He has
full ownership of the property and an unconditional right to sell it
or otherwise dispose of it. Louis has Select one:
A. An indenture.
B. A fee simple estate.
C. A tenancy by the entirety.
D. A life estate.
Answer:
B. A fee simple estate.
Question 5: Which one of the following elements must exist in
order to prove fraud? Select one:
A. A representation that was related to a past, existing, or future fact.
B. A representation, whether true or untrue, that was made
maliciously.
C. The intent of the representation was to influence or deceive.
, D. The plaintiff may or may not have acted anyway, but the
representation influenced the decision.
Answer:
C. The intent of the representation was to influence or deceive.
Question 6: Carla is an attorney in the legal department for an
insurer. She is drafting a document that details types of coverage
sought, object or premises to be insured, the amount of insurance,
the insured's name, and the duration of coverage. Carla is drafting
a(n) Select one:
A. Lawful objective.
B. Genuine assent.
C. Agreement to insure.
D. Offer to insure.
Answer:
C. Agreement to insure.
Question 7: While driving, Karl's foot slips off the brake and his car
rolls into the back of Sunny's vehicle. No one is hurt, but the
accident caused a large dent in the back bumper of Sunny's
vehicle. For which one of the following types of damages is Sunny
eligible? Select one:
A. General damages
B. Special damages
C. Incidental damages
D. Bad-faith damages
Answer:
B. Special damages
Question 8: In contract cases involving breach of duty of good
faith, which one of the following types of damages might a court
