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CPCU 553 - Personal Insurance and
Financial Planning Questions and
Correct Answers/ Latest Update /
Already Graded
Define: Liability loss exposure
Ans: 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.
Define: Damages
Ans: Money claimed by, or a monetary award to, a party who has
suffered bodily injury or property damage for which another party is
legally responsible.
Define: Special Damages
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Ans: 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
Define: General Damages
Ans: A monetary award to compensate a victim for losses, such as pain
and suffering, that does not involve specific, measurable expenses.
Define: Punitive Damages (Exemplary Damages)
Ans: 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.
Define: Civil Law
Ans: 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
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Define: Tort
Ans: A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right
Define: Negligence
Ans: The failure to exercise the degree of care that a reasonable person in
a similar situation would exercise to avoid harming others.
Define: Intentional Tort
Ans: A tort committed by a person who foresees (or should be able to
foresee) that his or her act will harm another person.
Define: Strict (Absolute) Liability
Ans: Liability imposed by a court or by a statute in the absence of fault
when harm results from activities or conditions that are extremely
dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or
inappropriate.
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Define: Risk Management Process
Ans: The method of making, implementing, and monitoring decisions that
minimize the adverse effects of risk on an organization
Assets exposed to liability loss include:
Ans: all currently owned financial assets, and potentially some future
income
What is a cause of a liability loss?
Ans: claim for money damages
Intentional Torts
CPCU 553 - Personal Insurance and
Financial Planning Questions and
Correct Answers/ Latest Update /
Already Graded
Define: Liability loss exposure
Ans: 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.
Define: Damages
Ans: Money claimed by, or a monetary award to, a party who has
suffered bodily injury or property damage for which another party is
legally responsible.
Define: Special Damages
,2 | Page
Ans: 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
Define: General Damages
Ans: A monetary award to compensate a victim for losses, such as pain
and suffering, that does not involve specific, measurable expenses.
Define: Punitive Damages (Exemplary Damages)
Ans: 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.
Define: Civil Law
Ans: 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
,3 | Page
Define: Tort
Ans: A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right
Define: Negligence
Ans: The failure to exercise the degree of care that a reasonable person in
a similar situation would exercise to avoid harming others.
Define: Intentional Tort
Ans: A tort committed by a person who foresees (or should be able to
foresee) that his or her act will harm another person.
Define: Strict (Absolute) Liability
Ans: Liability imposed by a court or by a statute in the absence of fault
when harm results from activities or conditions that are extremely
dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or
inappropriate.
, 4 | Page
Define: Risk Management Process
Ans: The method of making, implementing, and monitoring decisions that
minimize the adverse effects of risk on an organization
Assets exposed to liability loss include:
Ans: all currently owned financial assets, and potentially some future
income
What is a cause of a liability loss?
Ans: claim for money damages
Intentional Torts
