RMIN 5540 Adv. Liability exam 1
questions and answers passed
liability loss - correct answer ✔✔Any loss that a person/org. sustains as a result of a claim or
suit against that person/org. by someone seeking damages or some other legal remedy
permitted by law.
Legal Liability - correct answer ✔✔The legally enforceable obligation of a person or an
organization to pay a sum of money to another person or organization; can be imposed by civil
law, criminal law, or both
tort - correct answer ✔✔A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
negligence - correct answer ✔✔duty owed to another person, a breach of that duty, close
causal connection between the negligent act and the resulting injury, the occurrence of an
actual loss or damage of a type recognized by law and measurable in monetary terms
intentional tort - correct answer ✔✔tort committed by a person who foresees, or should
foresee, that his/her act will harm another person; act does not necessarily need to be
performed with malicious/hostile intent
strict liability - correct answer ✔✔liability imposed even though there is no negligence or intent
to cause harm; common w/ highly dangerous things such as explosives or wild animals
legal liability from contracts - correct answer ✔✔if one party fails to honor a promise, the other
party may be able to enforce the contract by going to court; this can arise through breach of
contract or a hold harmless/indemnification agreement
, breach of contract - correct answer ✔✔failure to perform the obligations of a contract;
common ex. warranty for product sold & product does not live up to expectations, results in an
injury, insured will be liable for damages & it will not be covered
hold harmless agreement - correct answer ✔✔agreement where one party agrees to take on
the liability of another party that would arise out of an activity/product
contractual liability - correct answer ✔✔Liability assumed through a hold-harmless agreement
that is commonly covered under liability insurance policies
statute - correct answer ✔✔called ordinances at local level; duties imposed by these can be
used as evidence of a person's duty of care in a tort action as well as impose strict liability; ex:
workers comp
premises and operations loss exposure - correct answer ✔✔arising from BI/PD caused by an
accident that occurs on an org's owned, leased, or rented premises or by an accident that arises
out of the org's ongoing operations that are away from the premises; usually based on
negligence; can include BI/PD arising out of the use of mobile equipment (autos, water/aircraft,
& injury to employees on premises are treated as separate exposures)
products liability exposure - correct answer ✔✔based on strict liability in tort; arises out of
manufacture, distribution, or sale of an unsafe/dangerous/defective product and the failure of
the manufacturer/distributor/retailer to meet their legal duties to the consumer of the product
plaintiff must prove this for products liability - correct answer ✔✔product was defective when it
left the manufacturer/supplier's custody/control; defective condition made the product
unreasonably dangerous; defective product was the proximate cause of the plaintiff's injury
completed operations liability exposure - correct answer ✔✔the legal responsibility of a
contractor, repairer, or other entity for BI/PD arising out of the entity's completed work; liable if
known defect in work & there was an attempt to conceal it
questions and answers passed
liability loss - correct answer ✔✔Any loss that a person/org. sustains as a result of a claim or
suit against that person/org. by someone seeking damages or some other legal remedy
permitted by law.
Legal Liability - correct answer ✔✔The legally enforceable obligation of a person or an
organization to pay a sum of money to another person or organization; can be imposed by civil
law, criminal law, or both
tort - correct answer ✔✔A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
negligence - correct answer ✔✔duty owed to another person, a breach of that duty, close
causal connection between the negligent act and the resulting injury, the occurrence of an
actual loss or damage of a type recognized by law and measurable in monetary terms
intentional tort - correct answer ✔✔tort committed by a person who foresees, or should
foresee, that his/her act will harm another person; act does not necessarily need to be
performed with malicious/hostile intent
strict liability - correct answer ✔✔liability imposed even though there is no negligence or intent
to cause harm; common w/ highly dangerous things such as explosives or wild animals
legal liability from contracts - correct answer ✔✔if one party fails to honor a promise, the other
party may be able to enforce the contract by going to court; this can arise through breach of
contract or a hold harmless/indemnification agreement
, breach of contract - correct answer ✔✔failure to perform the obligations of a contract;
common ex. warranty for product sold & product does not live up to expectations, results in an
injury, insured will be liable for damages & it will not be covered
hold harmless agreement - correct answer ✔✔agreement where one party agrees to take on
the liability of another party that would arise out of an activity/product
contractual liability - correct answer ✔✔Liability assumed through a hold-harmless agreement
that is commonly covered under liability insurance policies
statute - correct answer ✔✔called ordinances at local level; duties imposed by these can be
used as evidence of a person's duty of care in a tort action as well as impose strict liability; ex:
workers comp
premises and operations loss exposure - correct answer ✔✔arising from BI/PD caused by an
accident that occurs on an org's owned, leased, or rented premises or by an accident that arises
out of the org's ongoing operations that are away from the premises; usually based on
negligence; can include BI/PD arising out of the use of mobile equipment (autos, water/aircraft,
& injury to employees on premises are treated as separate exposures)
products liability exposure - correct answer ✔✔based on strict liability in tort; arises out of
manufacture, distribution, or sale of an unsafe/dangerous/defective product and the failure of
the manufacturer/distributor/retailer to meet their legal duties to the consumer of the product
plaintiff must prove this for products liability - correct answer ✔✔product was defective when it
left the manufacturer/supplier's custody/control; defective condition made the product
unreasonably dangerous; defective product was the proximate cause of the plaintiff's injury
completed operations liability exposure - correct answer ✔✔the legal responsibility of a
contractor, repairer, or other entity for BI/PD arising out of the entity's completed work; liable if
known defect in work & there was an attempt to conceal it
