AIC 302 Exam Questions with Verified Correct
Answers
First-party claim
A demand by an insured person or organization seeking to recover from its insurer for a loss
that its insurance policy may cover.
Third-party claim
A demand against an insured by a person or organization other than the insured or the insurer,
seeking to recover damages that may be payable by the insured's liability insurance.
Negligence
The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent
cause, produces an event and without which the event would not have happened.
Dram shop act
A statute holding establishments that serve alcoholic beverages responsible for harm that
results from serving patrons alcohol in violation of the statute.
Negligent entrustment
The act of leaving a dangerous article with a person who the lender knows, or should know,
is likely to use it in an unreasonably risky manner.
Negligence per se
, An act that is considered inherently negligent because of a violation of a law or an ordinance.
Vicarious liability
A legal responsibility that occurs when one party is held liable for the actions of a
subordinate or an associate because of the relationship between the two parties.
Agent
In the agency relationship, the party that is authorized by the principal to act on the principal's
behalf.
Principal
The party in an agency relationship that authorizes the agent to act on that party's behalf.
Rescue doctrine
A legal doctrine providing that a party causing an accident can be liable to any people
involved in rescue efforts as a result of the accident.
Joint and several liability
The liability of multiple defendants either collectively or individually for the entire amount of
damages sought by the plaintiff regardless of their relative degree of responsibility.
Tortfeasor
A person or organization that has committed a tort.
Successive tortfeasors
Parties whose independent acts do not produce a single event but unite to cause a single
injury that can be easily apportioned among the wrongdoers.
Bailee
Answers
First-party claim
A demand by an insured person or organization seeking to recover from its insurer for a loss
that its insurance policy may cover.
Third-party claim
A demand against an insured by a person or organization other than the insured or the insurer,
seeking to recover damages that may be payable by the insured's liability insurance.
Negligence
The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent
cause, produces an event and without which the event would not have happened.
Dram shop act
A statute holding establishments that serve alcoholic beverages responsible for harm that
results from serving patrons alcohol in violation of the statute.
Negligent entrustment
The act of leaving a dangerous article with a person who the lender knows, or should know,
is likely to use it in an unreasonably risky manner.
Negligence per se
, An act that is considered inherently negligent because of a violation of a law or an ordinance.
Vicarious liability
A legal responsibility that occurs when one party is held liable for the actions of a
subordinate or an associate because of the relationship between the two parties.
Agent
In the agency relationship, the party that is authorized by the principal to act on the principal's
behalf.
Principal
The party in an agency relationship that authorizes the agent to act on that party's behalf.
Rescue doctrine
A legal doctrine providing that a party causing an accident can be liable to any people
involved in rescue efforts as a result of the accident.
Joint and several liability
The liability of multiple defendants either collectively or individually for the entire amount of
damages sought by the plaintiff regardless of their relative degree of responsibility.
Tortfeasor
A person or organization that has committed a tort.
Successive tortfeasors
Parties whose independent acts do not produce a single event but unite to cause a single
injury that can be easily apportioned among the wrongdoers.
Bailee
