RMIN 5100S Exam 3(Brown) Questions
Latest Update 2026 (Questions and
Answers-Verified solutions
Property, Personal, and Liability Risk - CORRECT ANSWERS - If its YOUR stuff, it
is a Property Risk.
- If YOUR life, health or income are at Risk , it is a Personal Risk.
- If you could be responsible for damage to SOMEONE ELSE'S stuff or for bodily injury or financial loss to
SOMEONE ELSE, it is a Liability Risk.
Loss/Risk Exposures - CORRECT ANSWERS those areas where a business may
have a loss
Loss/Risk Control - CORRECT ANSWERS steps to prevent losses from happening
and/or reduce severity if they do happen
Criminal vs Civil Legal Liability - CORRECT ANSWERS - CRIMINAL: Crimes against
society.
-> Punishable by Imprisonment & Fines.
- CIVIL: Breach of Duty owed to others.
-> Punishable by Money & Injunctions.
*a single act may be both a Civil wrong and a Crime.
Basic Lingo - CORRECT ANSWERS - Casualty = Liability
- BI = Bodily Injury (and death is the ultimate form of BI) by ACCIDENT or DISEASE
,- PD = Property Damage
Bases for Legal Liability (3) - CORRECT ANSWERS 1) Torts
2) Contracts
3) Statutes
1) Torts - CORRECT ANSWERS - Negligence
- Intentional
- Strict Liability
Negligence (4) - CORRECT ANSWERS "Common Law Negligence"
- based on:
1) Duty of Care: Reasonably Prudent Person Standard
2) Breach of Duty
3) Injury/Damage
4) Proximate Cause: causal connection btw duty, breach, and injury/damage
Intentional Torts - CORRECT ANSWERS Intentional Injury: intent to cause harm
- the purpose of the act is to cause harm
- ex. assault, battery, invasion of privacy
Intentional Act: with NO intent to cause harm
- the tortfeaser intended to do the action. However, does not intend to cause harm
- ex. you're running late for a meeting no you run a yellow light and hit another car. running the yellow
was an intentional act. hitting anther car was not
, Strict Liability (Absolute Liability) - CORRECT ANSWERS liability in the absence
of Negligence and Intentional Tort
- also used to describe liability from statutes (including dram shop and workers comp)
2) Contracts (2) - CORRECT ANSWERS 1) Breach of Contracts
2) Hold-Harmless / Assumption of Liability
1) Breach of Contracts - CORRECT ANSWERS - Failure of the seller to fulfill its
promise.
- In the eyes of the law, the seller "warrants" that a product is fit for its intended use.
- If a products fails to function well, they buyer will likely want his/her money back.
- But, things get a bit more serious if the product's failure then results in BI/PD.
-> *The resulting BI/PD is often covered by insurance. The money back for the product itself is not*
2) Hold-Harmless / Assumption of Liability - CORRECT ANSWERS - Hold
Harmless and Indemnification Agreements: assume legal liability for another's liability
-> If Party A agrees to hold harmless and/or indemnify Party B, then Party A has assumed a Contractual
Liability. Typically, this is insurable...but you need to notify your insurer.
3) Statutes (2) - CORRECT ANSWERS - State or Federal = Statutes
- Local = Ordinances
Laws passed by a legislative body that may increase liability or make a party strictly liable.
1) Workers Comp
2) Dram Shop
Latest Update 2026 (Questions and
Answers-Verified solutions
Property, Personal, and Liability Risk - CORRECT ANSWERS - If its YOUR stuff, it
is a Property Risk.
- If YOUR life, health or income are at Risk , it is a Personal Risk.
- If you could be responsible for damage to SOMEONE ELSE'S stuff or for bodily injury or financial loss to
SOMEONE ELSE, it is a Liability Risk.
Loss/Risk Exposures - CORRECT ANSWERS those areas where a business may
have a loss
Loss/Risk Control - CORRECT ANSWERS steps to prevent losses from happening
and/or reduce severity if they do happen
Criminal vs Civil Legal Liability - CORRECT ANSWERS - CRIMINAL: Crimes against
society.
-> Punishable by Imprisonment & Fines.
- CIVIL: Breach of Duty owed to others.
-> Punishable by Money & Injunctions.
*a single act may be both a Civil wrong and a Crime.
Basic Lingo - CORRECT ANSWERS - Casualty = Liability
- BI = Bodily Injury (and death is the ultimate form of BI) by ACCIDENT or DISEASE
,- PD = Property Damage
Bases for Legal Liability (3) - CORRECT ANSWERS 1) Torts
2) Contracts
3) Statutes
1) Torts - CORRECT ANSWERS - Negligence
- Intentional
- Strict Liability
Negligence (4) - CORRECT ANSWERS "Common Law Negligence"
- based on:
1) Duty of Care: Reasonably Prudent Person Standard
2) Breach of Duty
3) Injury/Damage
4) Proximate Cause: causal connection btw duty, breach, and injury/damage
Intentional Torts - CORRECT ANSWERS Intentional Injury: intent to cause harm
- the purpose of the act is to cause harm
- ex. assault, battery, invasion of privacy
Intentional Act: with NO intent to cause harm
- the tortfeaser intended to do the action. However, does not intend to cause harm
- ex. you're running late for a meeting no you run a yellow light and hit another car. running the yellow
was an intentional act. hitting anther car was not
, Strict Liability (Absolute Liability) - CORRECT ANSWERS liability in the absence
of Negligence and Intentional Tort
- also used to describe liability from statutes (including dram shop and workers comp)
2) Contracts (2) - CORRECT ANSWERS 1) Breach of Contracts
2) Hold-Harmless / Assumption of Liability
1) Breach of Contracts - CORRECT ANSWERS - Failure of the seller to fulfill its
promise.
- In the eyes of the law, the seller "warrants" that a product is fit for its intended use.
- If a products fails to function well, they buyer will likely want his/her money back.
- But, things get a bit more serious if the product's failure then results in BI/PD.
-> *The resulting BI/PD is often covered by insurance. The money back for the product itself is not*
2) Hold-Harmless / Assumption of Liability - CORRECT ANSWERS - Hold
Harmless and Indemnification Agreements: assume legal liability for another's liability
-> If Party A agrees to hold harmless and/or indemnify Party B, then Party A has assumed a Contractual
Liability. Typically, this is insurable...but you need to notify your insurer.
3) Statutes (2) - CORRECT ANSWERS - State or Federal = Statutes
- Local = Ordinances
Laws passed by a legislative body that may increase liability or make a party strictly liable.
1) Workers Comp
2) Dram Shop
