AIC 32 LIABILITY CLAIMS PRACTICES
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Professional Liability - ANS - they have a higher-than-average defendant verdict
- include a consent-to-settle clause, where the insurer has to obtain consent from the
professional to settle the claim
The subjective standard for determining whether injury or property damage involves expected
results can be described as - ANS What the insured expected and intended from the act.
The objective standard - ANS is based on what a reasonable person would expect from a
particular act.
Exceptions to the business exclusion for rentals - ANS - rental on an occasional basis
- renting rooms to no more than two people
- rental for use of an office, a school, a studio, or a private garage.
The BACF applies while - ANS the insd is in the process of handling cargo from the time it is
picked up until it is "finally" set down. For loading from the moment it is physically accepted,
lifted, or taken to and placed in or on the veh.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Proprietary Function - ANS a function performed by the government that could just as easily
be performed by a private entity
Trade Dress - ANS nonfunctional physical detail and design of a product or its packaging,
which distinguishes it from the products of others. (color, design, shapes, placements of words,
decoration, packing)
Negligence Per Se - ANS Violation of a statute creates a presumption of negligence as a
matter of law.
Concurrent Joint TF - ANS negligent acts of two or more parties combine to produce a single
injury .they both can be held separately responsible for the entire amount of a claimant's
damages.
Successive Joint TF - ANS when the negligent acts of two or more parties do not combine to
produce a single event but do combine to produce the injury.
- damages are divisible and a claimant must seek pymt from each
The 50 percent rule - ANS permits the plaintiff to recover reduced damages so long as the
plaintiff's negligence is not greater than 50 percent of the total negligence that led to the injury
or damage
Rescue doctrine - ANS TF can be held liable to any people involved in rescue efforts.
Principle of Unforeseeability - ANS responsibility is limited to situations where an ordinarily
prudent person could foresee danger under similar circumstances .
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Professional Liability - ANS - they have a higher-than-average defendant verdict
- include a consent-to-settle clause, where the insurer has to obtain consent from the
professional to settle the claim
The subjective standard for determining whether injury or property damage involves expected
results can be described as - ANS What the insured expected and intended from the act.
The objective standard - ANS is based on what a reasonable person would expect from a
particular act.
Exceptions to the business exclusion for rentals - ANS - rental on an occasional basis
- renting rooms to no more than two people
- rental for use of an office, a school, a studio, or a private garage.
The BACF applies while - ANS the insd is in the process of handling cargo from the time it is
picked up until it is "finally" set down. For loading from the moment it is physically accepted,
lifted, or taken to and placed in or on the veh.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Proprietary Function - ANS a function performed by the government that could just as easily
be performed by a private entity
Trade Dress - ANS nonfunctional physical detail and design of a product or its packaging,
which distinguishes it from the products of others. (color, design, shapes, placements of words,
decoration, packing)
Negligence Per Se - ANS Violation of a statute creates a presumption of negligence as a
matter of law.
Concurrent Joint TF - ANS negligent acts of two or more parties combine to produce a single
injury .they both can be held separately responsible for the entire amount of a claimant's
damages.
Successive Joint TF - ANS when the negligent acts of two or more parties do not combine to
produce a single event but do combine to produce the injury.
- damages are divisible and a claimant must seek pymt from each
The 50 percent rule - ANS permits the plaintiff to recover reduced damages so long as the
plaintiff's negligence is not greater than 50 percent of the total negligence that led to the injury
or damage
Rescue doctrine - ANS TF can be held liable to any people involved in rescue efforts.
Principle of Unforeseeability - ANS responsibility is limited to situations where an ordinarily
prudent person could foresee danger under similar circumstances .
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
