AU 62 Exam ELABORATIONS QUESTIONS AND
VERIFIED ANSWERS 2026 UPDATE | 100%
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Practice questions for this set
Learn 1 /7 Study with Learn
A form of retention under which an organization records its losses and
maintains a formal system to pay for them.
Choose an answer
1 Other States Insurance 2 Self-insurance
3 Reinsurance 4 Usage-based Insurance
Don't know?
Terms in this set (112)
,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
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 A contractual provision that obligates one of the
indemnity agreement) 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
VERIFIED ANSWERS 2026 UPDATE | 100%
SOLVED!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
A form of retention under which an organization records its losses and
maintains a formal system to pay for them.
Choose an answer
1 Other States Insurance 2 Self-insurance
3 Reinsurance 4 Usage-based Insurance
Don't know?
Terms in this set (112)
,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
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 A contractual provision that obligates one of the
indemnity agreement) 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
