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AIC 302 Questions with Detailed
Verified Answers
First-party claim Ans: A demand by an insured person or organization
seeking to recover from its insurer for a loss that its insurance policy may
cover.
Third-party claim Ans: A demand against an insured by a person or
organization other than the insured or the insurer, seeking to recover
damages that may be payable by the insured's liability insurance.
Negligence Ans: The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
Proximate cause Ans: A cause that, in a natural and continuous sequence
unbroken by any new and independent cause, produces an event and without
which the event would not have happened.
Dram shop act Ans: A statute holding establishments that serve alcoholic
beverages responsible for harm that results from serving patrons alcohol in
violation of the statute.
Negligent entrustment Ans: The act of leaving a dangerous article with a
person who the lender knows, or should know, is likely to use it in an
unreasonably risky manner.
Negligence per se Ans: An act that is considered inherently negligent because
of a violation of a law or an ordinance.
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Vicarious liability Ans: A legal responsibility that occurs when one party is held
liable for the actions of a subordinate or an associate because of the
relationship between the two parties.
Agent Ans: In the agency relationship, the party that is authorized by the
principal to act on the principal's behalf.
Principal Ans: The party in an agency relationship that authorizes the agent to
act on that party's behalf.
Rescue doctrine Ans: A legal doctrine providing that a party causing an
accident can be liable to any people involved in rescue efforts as a result of
the accident.
Joint and several liability Ans: The liability of multiple defendants either
collectively or individually for the entire amount of damages sought by the
plaintiff regardless of their relative degree of responsibility.
Tortfeasor Ans: A person or organization that has committed a tort.
Successive tortfeasors Ans: Parties whose independent acts do not produce a
single event but unite to cause a single injury that can be easily apportioned
among the wrongdoers.
Bailee Ans: The party temporarily possessing the personal property in a
bailment.
Bailor Ans: The owner of the personal property in a bailment.
Compensatory damages Ans: A payment awarded by a court to reimburse a
victim for actual harm.
AIC 302 Questions with Detailed
Verified Answers
First-party claim Ans: A demand by an insured person or organization
seeking to recover from its insurer for a loss that its insurance policy may
cover.
Third-party claim Ans: A demand against an insured by a person or
organization other than the insured or the insurer, seeking to recover
damages that may be payable by the insured's liability insurance.
Negligence Ans: The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
Proximate cause Ans: A cause that, in a natural and continuous sequence
unbroken by any new and independent cause, produces an event and without
which the event would not have happened.
Dram shop act Ans: A statute holding establishments that serve alcoholic
beverages responsible for harm that results from serving patrons alcohol in
violation of the statute.
Negligent entrustment Ans: The act of leaving a dangerous article with a
person who the lender knows, or should know, is likely to use it in an
unreasonably risky manner.
Negligence per se Ans: An act that is considered inherently negligent because
of a violation of a law or an ordinance.
, 2|Page
Vicarious liability Ans: A legal responsibility that occurs when one party is held
liable for the actions of a subordinate or an associate because of the
relationship between the two parties.
Agent Ans: In the agency relationship, the party that is authorized by the
principal to act on the principal's behalf.
Principal Ans: The party in an agency relationship that authorizes the agent to
act on that party's behalf.
Rescue doctrine Ans: A legal doctrine providing that a party causing an
accident can be liable to any people involved in rescue efforts as a result of
the accident.
Joint and several liability Ans: The liability of multiple defendants either
collectively or individually for the entire amount of damages sought by the
plaintiff regardless of their relative degree of responsibility.
Tortfeasor Ans: A person or organization that has committed a tort.
Successive tortfeasors Ans: Parties whose independent acts do not produce a
single event but unite to cause a single injury that can be easily apportioned
among the wrongdoers.
Bailee Ans: The party temporarily possessing the personal property in a
bailment.
Bailor Ans: The owner of the personal property in a bailment.
Compensatory damages Ans: A payment awarded by a court to reimburse a
victim for actual harm.
