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CPCU 552 Questions and Correct Answers
Liability Loss Exposure Ans: 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.
Strict Liability (absolute liability) Ans: 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.
Hold-harmless agreement (or indemnity agreement) Ans: A
contractual provision that obligates one of the parties to assume
the legal liability of another party.
Mobile Equipment Ans: Various types of vehicles designed for use
principally off public roads, such as bulldozers and cranes.
1st Key Element to Prove Strict Liability Ans: The product was
defective when it left the manufacturer's or supplier's custody or
control.
2nd Key Element to Prove Strict Liability Ans: The defective
condition made the product unreasonably dangerous.
3rd Key Element to Prove Strict Liability Ans: The defective
product was the proximate cause of the plaintiff's injury.
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Automobile Liability Ans: legal responsibility for bodily injury or
property damage arising out of the ownership, maintenance, or
use of automobiles
Workers Compensation and Employers Liability Ans: financial
remedy for occupational injury or illness to employees provided
by an employer that is required by various state and federal laws
Employment Practices Liability Ans: liability for damages
stemming from wrongful employment practices, such as
harassment, wrongful termination, and discrimination
Cyber Liability Ans: liability that stems from bodily injury and
product damage generated by technology-related activities, such
as collecting and transmitting electronic data, and failing to
protect that data
Professional Liability Ans: Liability arising out of the rendering or
failure to render services of a professional nature.
Three General Categories of Professional Liability Ans: 1.
healthcare professionals liability (medical malpractice)
2. financial and legal professionals liability (legal malpractice)
3. architects and engineers liability (architects and engineers
malpractice0
© 2025 All rights reserved
CPCU 552 Questions and Correct Answers
Liability Loss Exposure Ans: 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.
Strict Liability (absolute liability) Ans: 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.
Hold-harmless agreement (or indemnity agreement) Ans: A
contractual provision that obligates one of the parties to assume
the legal liability of another party.
Mobile Equipment Ans: Various types of vehicles designed for use
principally off public roads, such as bulldozers and cranes.
1st Key Element to Prove Strict Liability Ans: The product was
defective when it left the manufacturer's or supplier's custody or
control.
2nd Key Element to Prove Strict Liability Ans: The defective
condition made the product unreasonably dangerous.
3rd Key Element to Prove Strict Liability Ans: The defective
product was the proximate cause of the plaintiff's injury.
© 2025 All rights reserved
, 2 | Page
Automobile Liability Ans: legal responsibility for bodily injury or
property damage arising out of the ownership, maintenance, or
use of automobiles
Workers Compensation and Employers Liability Ans: financial
remedy for occupational injury or illness to employees provided
by an employer that is required by various state and federal laws
Employment Practices Liability Ans: liability for damages
stemming from wrongful employment practices, such as
harassment, wrongful termination, and discrimination
Cyber Liability Ans: liability that stems from bodily injury and
product damage generated by technology-related activities, such
as collecting and transmitting electronic data, and failing to
protect that data
Professional Liability Ans: Liability arising out of the rendering or
failure to render services of a professional nature.
Three General Categories of Professional Liability Ans: 1.
healthcare professionals liability (medical malpractice)
2. financial and legal professionals liability (legal malpractice)
3. architects and engineers liability (architects and engineers
malpractice0
© 2025 All rights reserved
