AU 62 Exam 2025 Questions and
Answers
Liability loss exposure - ✔✔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
Legal liability - ✔✔The legally enforceable obligation of a person or an organization to
pay a sum of money (called damages) to another person or organization.
Civil law - ✔✔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
Criminal law - ✔✔The branch of the law that imposes penalties for wrongs against
society
Civil wrong - ✔✔A wrong against a person or persons, for which remedies include
damages awarded to the victim and court-ordered injunctions to prevent further injury.
Crimes - ✔✔Certain activities deemed by society to be harmful to public welfare
Damages - ✔✔Money claimed by, or a monetary award to, a party who has suffered
loss or injury for which another party is legally responsible
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Tort - ✔✔A wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right
Negligence - ✔✔The failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others.
Intentional tort - ✔✔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) - ✔✔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
Contract - ✔✔A legally enforceable agreement between two or more parties
Breach of contract - ✔✔The failure, without legal excuse, to fulfill a contractual promise.
Hold-harmless agreement (or indemnity agreement) - ✔✔A contractual provision that
obligates one of the parties to assume the legal liability of another party.
Statute - ✔✔A written law passed by a legislative body at either the federal or state
level.
Loss of consortium - ✔✔The loss of benefits that one spouse is entitled to receive from
the other, including companionship, affection, and sexual relations resulting from the
injury or death of a spouse
Loss prevention - ✔✔A risk control technique that reduces the frequency of a particular
loss.
Loss reduction - ✔✔A risk control technique that reduces the severity of a particular
loss.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Answers
Liability loss exposure - ✔✔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
Legal liability - ✔✔The legally enforceable obligation of a person or an organization to
pay a sum of money (called damages) to another person or organization.
Civil law - ✔✔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
Criminal law - ✔✔The branch of the law that imposes penalties for wrongs against
society
Civil wrong - ✔✔A wrong against a person or persons, for which remedies include
damages awarded to the victim and court-ordered injunctions to prevent further injury.
Crimes - ✔✔Certain activities deemed by society to be harmful to public welfare
Damages - ✔✔Money claimed by, or a monetary award to, a party who has suffered
loss or injury for which another party is legally responsible
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Tort - ✔✔A wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right
Negligence - ✔✔The failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others.
Intentional tort - ✔✔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) - ✔✔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
Contract - ✔✔A legally enforceable agreement between two or more parties
Breach of contract - ✔✔The failure, without legal excuse, to fulfill a contractual promise.
Hold-harmless agreement (or indemnity agreement) - ✔✔A contractual provision that
obligates one of the parties to assume the legal liability of another party.
Statute - ✔✔A written law passed by a legislative body at either the federal or state
level.
Loss of consortium - ✔✔The loss of benefits that one spouse is entitled to receive from
the other, including companionship, affection, and sexual relations resulting from the
injury or death of a spouse
Loss prevention - ✔✔A risk control technique that reduces the frequency of a particular
loss.
Loss reduction - ✔✔A risk control technique that reduces the severity of a particular
loss.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
