AU62 Course Exam Practice
Questions with Correct Answers
An organization may incur losses from legal liabilities in a number of different ways.
Which one of the following actions would best be described as an intentional tort? -
✔✔A newspaper mistakenly identifies the driver in an alcohol-related hit and run
accident as John Doe, a prominent local attorney.
Martin, a 15-year-old boy, carelessly tossed a glass bottle over the heads of several
people toward a recycling bin 15 feet away. Luckily, Martin did not hit anybody
between him and the recycling bin, and the glass fell perfectly into the bin. Unluckily, a
private investigator was hiding in the recycling bin at that moment and suffered a
concussion from Martin's bottle. Which one of the following is the most significant legal
issue that the investigator might face in a negligence claim against Martin? -
✔✔Proximate Cause. Proximate cause is the most significant legal issue that the
investigator might face in a negligence claim against Martin, because Martin cannot be
liable for results that could not have been reasonably foreseen.
Generally, how do courts determine that a defendant is liable under negligence per se? -
✔✔Courts determine that a defendant is negligent per se when the defendant has
violated a statutory standard.
Emilia's neighbor, Lucas, planted a garden by Emilia's property. Emilia knew that
Lucas's garden was at risk of damage from flowing rainwater because of the hills at the
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,edge of her property. Emilia also knew that the trees on her property were old and
could fall in strong winds. During the next storm, the garden was destroyed by a
combination of rainwater, falling branches, and rocks rolling from Emilia's hills. Which
one of the following is correct concerning whether Lucas has a claim against Emilia for
any or all of the natural conditions that destroyed his garden? - ✔✔Emilia's only duty in
this case was to remove the old trees that she knew might fall, and she is not liable for
any other natural conditions. When a tree falls and causes damages on an adjacent
premises or a highway, the landowner might be liable for negligence if he or she knew
that the tree might fall and failed to take reasonable steps to remove it.
Paul and Jerry were both six years old when they entered a neighbor's home and used
baseball bats to smash and break household items. When establishing liability for Paul's
and Jerry's actions, the court will most likely primarily consider - ✔✔The tortfeasors'
capacity refers to whether someone has the capacity to form intent for a tortuous act.
Amy was severely injured in an accident with a tractor trailer. She lived for two weeks
following the accident amassing $200,000 of medical bills and other expenses related to
the accident. It is likely that a lawsuit, under survival statutes, the $200,000 of damages
will - ✔✔Be awarded in order to recover damages Amy sustained between the time of
her injuries and the time of her death. It is likely that in a lawsuit, under survival
statutes, the $200,000 of damages will be awarded in order to recover damages Amy
sustained between the time of her injuries and the time of her death
A court would most likely order an injunction for which one of the following purposes?
- ✔✔To stop infringement of a copyright.
In a class action lawsuit involving an insurer's claim practices, the court must consider
the elements of
Select one: - ✔✔Numerosity, commonality, typicality, and adequacy of representation
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,Baker Company's salesperson negligently injures a pedestrian while driving a Baker
Company vehicle on a sales call. Under which one of the following legal doctrines could
the pedestrian hold Baker Company responsible for injury caused by the negligence of
its employee? - ✔✔Respondeat superior. The doctrine of respondeat superior states that
an employer may be held liable for the acts of an employee as long as those acts are
within the scope of his or her employment.
Matthew Jones, the named insured under a Business Auto Coverage form (BACF),
requires his employees to use their own cars for business purposes. One of Matthew's
employees, Paul, causes an accident while driving his own truck for the business.
Matthew's BACF shows symbol 3 for liability coverage. Which one of the following
correctly indicates why Matthew is not an insured under the policy for Paul's use of his
own truck in this situation? - ✔✔Matthew is covered for owned private passenger autos
only.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He
looked to his business auto policy for coverage for his injuries. Which one of the
following symbols shown on his policy automatically provides such coverage? -
✔✔Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law
When an insured requests the Social Service Agencies—Volunteers as Insureds
endorsement, the insurer often requires the named insured to : - ✔✔Present evidence
that each insured volunteer has auto liability insurance in effect with certain minimum
limits of insurance. If an insured requests the Social Service Agencies—Volunteers as
Insureds, the insurer usually requests the insured to present evidence that each insured
volunteer has auto liability insurance in effect with certain minimum limits of
insurance.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, Emma runs a painting and wallpapering business. She owns a pickup truck that she
uses primarily to transport workers and materials to clients' homes. The most
appropriate use class for Emma's pickup truck is : - ✔✔Service use
Which one of the following is a true underwriting consideration relevant to business
auto physical damage? - ✔✔Underwriters can sometimes limit exposure to unexpected
high values by providing physical damage on a stated amount basis.
James Smith owns a fleet of tractor-trailer units. Mr. Smith devotes time and effort into
maintaining his auto fleet, the average age of which is 15 years old. Each vehicle is
inspected once a month. Mr. Smith has his own garage for preventive maintenance on
the vehicles. Mr. Smith believes that regular oil changes and new tires have kept his
fleet on the road despite their high mileage. When not in use, the vehicles are kept in a
fenced area behind the business.
All of the following are business auto physical damage underwriting concerns that
would likely have a negative effect on the decision to accept this account, EXCEPT: -
✔✔The fact that he does monthly inspections
Which one of the following is the measurement of road exposure or maximum distance
traveled? - ✔✔Radius of operation
Which one of the following statements is true regarding auto dealers coverage and the
underwriting of garage coverage? - ✔✔Customer use of owned autos is a normal
exposure for dealers and that exposure is difficult to underwrite.
Auto dealers are classified based on whether they are franchised or nonfranchised. The
classification also depends on which one of the following? - ✔✔Type of vehicles
A typical nonfranchised dealer stores all vehicles in which one of the following? -
✔✔Nonstandard open lot
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
Questions with Correct Answers
An organization may incur losses from legal liabilities in a number of different ways.
Which one of the following actions would best be described as an intentional tort? -
✔✔A newspaper mistakenly identifies the driver in an alcohol-related hit and run
accident as John Doe, a prominent local attorney.
Martin, a 15-year-old boy, carelessly tossed a glass bottle over the heads of several
people toward a recycling bin 15 feet away. Luckily, Martin did not hit anybody
between him and the recycling bin, and the glass fell perfectly into the bin. Unluckily, a
private investigator was hiding in the recycling bin at that moment and suffered a
concussion from Martin's bottle. Which one of the following is the most significant legal
issue that the investigator might face in a negligence claim against Martin? -
✔✔Proximate Cause. Proximate cause is the most significant legal issue that the
investigator might face in a negligence claim against Martin, because Martin cannot be
liable for results that could not have been reasonably foreseen.
Generally, how do courts determine that a defendant is liable under negligence per se? -
✔✔Courts determine that a defendant is negligent per se when the defendant has
violated a statutory standard.
Emilia's neighbor, Lucas, planted a garden by Emilia's property. Emilia knew that
Lucas's garden was at risk of damage from flowing rainwater because of the hills at the
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,edge of her property. Emilia also knew that the trees on her property were old and
could fall in strong winds. During the next storm, the garden was destroyed by a
combination of rainwater, falling branches, and rocks rolling from Emilia's hills. Which
one of the following is correct concerning whether Lucas has a claim against Emilia for
any or all of the natural conditions that destroyed his garden? - ✔✔Emilia's only duty in
this case was to remove the old trees that she knew might fall, and she is not liable for
any other natural conditions. When a tree falls and causes damages on an adjacent
premises or a highway, the landowner might be liable for negligence if he or she knew
that the tree might fall and failed to take reasonable steps to remove it.
Paul and Jerry were both six years old when they entered a neighbor's home and used
baseball bats to smash and break household items. When establishing liability for Paul's
and Jerry's actions, the court will most likely primarily consider - ✔✔The tortfeasors'
capacity refers to whether someone has the capacity to form intent for a tortuous act.
Amy was severely injured in an accident with a tractor trailer. She lived for two weeks
following the accident amassing $200,000 of medical bills and other expenses related to
the accident. It is likely that a lawsuit, under survival statutes, the $200,000 of damages
will - ✔✔Be awarded in order to recover damages Amy sustained between the time of
her injuries and the time of her death. It is likely that in a lawsuit, under survival
statutes, the $200,000 of damages will be awarded in order to recover damages Amy
sustained between the time of her injuries and the time of her death
A court would most likely order an injunction for which one of the following purposes?
- ✔✔To stop infringement of a copyright.
In a class action lawsuit involving an insurer's claim practices, the court must consider
the elements of
Select one: - ✔✔Numerosity, commonality, typicality, and adequacy of representation
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,Baker Company's salesperson negligently injures a pedestrian while driving a Baker
Company vehicle on a sales call. Under which one of the following legal doctrines could
the pedestrian hold Baker Company responsible for injury caused by the negligence of
its employee? - ✔✔Respondeat superior. The doctrine of respondeat superior states that
an employer may be held liable for the acts of an employee as long as those acts are
within the scope of his or her employment.
Matthew Jones, the named insured under a Business Auto Coverage form (BACF),
requires his employees to use their own cars for business purposes. One of Matthew's
employees, Paul, causes an accident while driving his own truck for the business.
Matthew's BACF shows symbol 3 for liability coverage. Which one of the following
correctly indicates why Matthew is not an insured under the policy for Paul's use of his
own truck in this situation? - ✔✔Matthew is covered for owned private passenger autos
only.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He
looked to his business auto policy for coverage for his injuries. Which one of the
following symbols shown on his policy automatically provides such coverage? -
✔✔Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law
When an insured requests the Social Service Agencies—Volunteers as Insureds
endorsement, the insurer often requires the named insured to : - ✔✔Present evidence
that each insured volunteer has auto liability insurance in effect with certain minimum
limits of insurance. If an insured requests the Social Service Agencies—Volunteers as
Insureds, the insurer usually requests the insured to present evidence that each insured
volunteer has auto liability insurance in effect with certain minimum limits of
insurance.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, Emma runs a painting and wallpapering business. She owns a pickup truck that she
uses primarily to transport workers and materials to clients' homes. The most
appropriate use class for Emma's pickup truck is : - ✔✔Service use
Which one of the following is a true underwriting consideration relevant to business
auto physical damage? - ✔✔Underwriters can sometimes limit exposure to unexpected
high values by providing physical damage on a stated amount basis.
James Smith owns a fleet of tractor-trailer units. Mr. Smith devotes time and effort into
maintaining his auto fleet, the average age of which is 15 years old. Each vehicle is
inspected once a month. Mr. Smith has his own garage for preventive maintenance on
the vehicles. Mr. Smith believes that regular oil changes and new tires have kept his
fleet on the road despite their high mileage. When not in use, the vehicles are kept in a
fenced area behind the business.
All of the following are business auto physical damage underwriting concerns that
would likely have a negative effect on the decision to accept this account, EXCEPT: -
✔✔The fact that he does monthly inspections
Which one of the following is the measurement of road exposure or maximum distance
traveled? - ✔✔Radius of operation
Which one of the following statements is true regarding auto dealers coverage and the
underwriting of garage coverage? - ✔✔Customer use of owned autos is a normal
exposure for dealers and that exposure is difficult to underwrite.
Auto dealers are classified based on whether they are franchised or nonfranchised. The
classification also depends on which one of the following? - ✔✔Type of vehicles
A typical nonfranchised dealer stores all vehicles in which one of the following? -
✔✔Nonstandard open lot
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
