AIC 301 Quiz/Test Study Questions and Answers 100% Pass

AIC 301 Quiz/Test Study Questions and Answers 100% Pass Market Share Liability - Correct Answer ️️ -Applies when a product that has harmed a consumer cannot be traced to a single manufacturer. They are liable unless they can prove they could not have made the product involved. A Defense to Fraud - Correct Answer ️️ -The defendant must make the representation with the intent to influence the other party's action. If the defendant did not intend to deceive, there is no proof of fraud. Community Property - Correct Answer ️️ -Under the community property concept two types of property can belong to a spouse - separate property as well as community property. Separate property is the respective spouse's sole property and it is free from the other spouse's interest or control. Parole Evidence Rule (PER) - Correct Answer ️️ -The parole evidence rule provides that oral evidence of agreements preceding or accompanying a written insurance policy cannot be used to prove a waiver. Thus, the agent's oral statements made at this time would not be admitted into evidence and thus would be ineffective as a waiver. A provision that prevents the terms of a contract from being modified by evidence of oral or other agreements after the contract has been written. Defenses to Tort Fraud - Correct Answer ️️ -The statement was not false The statement did not relate to a material fact The defendant did not know the statement was false The defendant did not intend to deceive The plaintiff did not rely on the statements The plaintiff suffered no harm or or loss because of relying on the statement A Constructive Eviction - Correct Answer ️️ -Actions or inactions of a landlord that create conditions that prevent a tenant from enjoying a substantial or integral part of the premise constitute a constructive eviction. Repudiation of a Contract - Correct Answer ️️ -repudiation of a contract is the refusal to meet obligations under the contract, but it must be positive and unequivocal to constitute a breach. A statement of inability to perform in the future is not repudiation. A person cannot sue for breach of contract until due date and person has failed to complete the job. Frustration of Purpose - Correct Answer ️️ -A rental contract is useless to a person since the original purpose for the rental was frustrated because the celebrity was not there. Frustration of purpose can discharge a contract that is possible to perform, when a supervening event destroys the propose or value of the contract, provided that both parties are aware of that purpose or value. Direct Action Statutes Garnishment - Correct Answer ️️ -Third parties are generally not allowed to sue insurers of negligent parties who injure them or damage their property. Some states have enacted direct action statutes permitting third party sue insurer directly or both insurer and insured/wrongdoer/tortfeasor directly If insured denies claim payments after judgement, some states allow third party to sue the insurer directly in a statutory action called garnishment. Consequential Damages - Correct Answer ️️ -The loss of the entry fee money is an example of consequential damages. Consequential damages are awarded by court to indemnify injured parties for losses that result indirectly from a wrong, such as a breach of contract as in this situation. Enterprise/Industry-Wide Liabili