P&C Insurance Exam - Property &
Casualty Basics fully solved
What is the difference between an accident & an occurrence? - correct answer ✔✔Both result
in injury to persons or damage to property that is neither intended nor expected; however an
accident is sudden, unplanned and unexpected event. an occurrence includes losses caused by
continuous or repeated exposure to certain conditions.
How are indirect and direct loss related? - correct answer ✔✔Direct losses can cause indirect
losses.
When absolute liability is involved, does the injured party need to prove negligence? - correct
answer ✔✔No, does not need to prove negligence.
If a product is unsafe, what kind of liability applies to the manufacturer? - correct answer
✔✔Strict Liability
What type of behavior constitutes negligence? - correct answer ✔✔Failure to behave in the
same manner as would a reasonable and prudent person.
proximate cause - correct answer ✔✔an act or event considered a natural and reasoning
foreseeable cause of the damage to property or injuries a plaintiff.
What is the difference between contributory and comparative negligence? - correct answer
✔✔Under contributory negligence, the injured party must be completely free of fault in order
to collect. Any negligence on the part of the injured party that contributed to the injury
however slight, will normally defeat the claim.
In contrast, comparative negligence will NOT necessarily defeat the claim, but will be used to
mitigate the damages payable to the other party.
Casualty Basics fully solved
What is the difference between an accident & an occurrence? - correct answer ✔✔Both result
in injury to persons or damage to property that is neither intended nor expected; however an
accident is sudden, unplanned and unexpected event. an occurrence includes losses caused by
continuous or repeated exposure to certain conditions.
How are indirect and direct loss related? - correct answer ✔✔Direct losses can cause indirect
losses.
When absolute liability is involved, does the injured party need to prove negligence? - correct
answer ✔✔No, does not need to prove negligence.
If a product is unsafe, what kind of liability applies to the manufacturer? - correct answer
✔✔Strict Liability
What type of behavior constitutes negligence? - correct answer ✔✔Failure to behave in the
same manner as would a reasonable and prudent person.
proximate cause - correct answer ✔✔an act or event considered a natural and reasoning
foreseeable cause of the damage to property or injuries a plaintiff.
What is the difference between contributory and comparative negligence? - correct answer
✔✔Under contributory negligence, the injured party must be completely free of fault in order
to collect. Any negligence on the part of the injured party that contributed to the injury
however slight, will normally defeat the claim.
In contrast, comparative negligence will NOT necessarily defeat the claim, but will be used to
mitigate the damages payable to the other party.
