CPCU Exam Questions with Correct Answers

CPCU Exam Questions with Correct Answers Liability loss exposure - Answer-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 - Answer-Money claimed by, or a monetary award to, a party who has suffered loss or injury for which another party is legally responsible Special damages - Answer-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 General damages - Answer-A monetary award to compensate a victim for losses, such as pain and suffering, that does not involve specific, measurable expenses Punitive damages (exemplary damages) - Answer-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 - Answer-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 - Answer-A wrongful act or an omission, other than a crime or a breach of contract, that invades a legally protected right Negligence - Answer-The failure to exercise the degree of care that a reasonable person in a similar situation would exercise to avoid harming others Intentional tort - Answer-A tort committed by a person who foresees (or should be able to foresee) that his or her act will harm another person Strict liability (absolute liability) - Answer-Liability imposed