CISR - Commercial Casualty I UPDATED
ACTUAL Questions and CORRECT
Answers
Give the 2 reasons why a named Insured adds another person or organization as an addt'l Insd -
CORRECT ANSWER - Close or business (contractual) relationship
What are the three categories of legal liability? - CORRECT ANSWER - Tort, Statutory,
& Contractual
Tort Liability - CORRECT ANSWER - a wrongful action or omission that harms a person
or business, prompting the injured party to seek compensation in civil court. As a result, the
guilty person (the defendant or tortfeasor) bears legal liability; Differs from crime in that it is a
violation of a common or civil law
Statutory Liability - CORRECT ANSWER - liability arising out of specific rules or laws
(statutes) enacted by a legislative body providing direction or prohibition; overrides common
law; Ex/ Dram/Liquor, Americans w Disabilities Act, WC, etc.
Contractual Liability - CORRECT ANSWER - an agreement between two or more parties,
which creates an obligation to do or not to do a particular thing; Ex/ Lessor-Lessee, Owner-
Contractor, etc.
Warranty - CORRECT ANSWER - assurance made by seller of goods, either express or
implied, that references quality/fitness of goods/services & is relied upon by buyer of
goods/services
What are the 4 types of Tort Liability? - CORRECT ANSWER - Negligence, Intentional,
Strict, & Absolute
Negligence Tort Liability - CORRECT ANSWER - the failure to act as a reasonable
person would under the same or similar circumstances
, Intentional Torts - CORRECT ANSWER - An intentional or voluntary act where the
person or organization committing the act is expressly or implicitly deemed to have possessed
intent or purpose to injure
Example of an Intentional Tort - CORRECT ANSWER - Libel, wrongful entry/eviction,
assault/battery, false arrest, etc.
Strict Liability Tort - CORRECT ANSWER - concept applied by the courts in PRODUCT
liability suits in which a manufacturer, distributor or seller is liable for any and all defective or
hazardous products that unduly threaten a consumer's health and safety; Proximate cause NOT
applied & all that has to be proven is product that caused damage was defective
Absolute Liability - CORRECT ANSWER - liability without regard to fault; All that has
to be proved is that an injury or damage occurs because of the activities; ACCIDENTAL,
couldn't be helped
4 Requirements of a Negligent Tort - CORRECT ANSWER - Must be duty owed, breach
of that duty, actual injury/loss must occur, & there has to be close cause & effect (proximate
cause) relationship btwn breach of duty & injury/loss
Direct Liability - CORRECT ANSWER - results from the CONDUCT of a person or
organization that is responsible for injury or property damage to another
Example of Direct Liability - CORRECT ANSWER - Deem's Market, Inc. fails to clean
up a food spill in one of its grocery aisles, and a patron slips on the food, falls and breaks several
bones. The claimant sues Deem's Market, Inc. because it directly caused the injury
Vicarious Liability - CORRECT ANSWER - liability of one party based upon the liability
of another. It is said that liability is imputed (TRANSFERRED from one party to the other)
Example of Vicarious Liability - CORRECT ANSWER - While delivering groceries, an
employee of Deem's Market, Inc. causes an auto accident in which three people are injured. The
ACTUAL Questions and CORRECT
Answers
Give the 2 reasons why a named Insured adds another person or organization as an addt'l Insd -
CORRECT ANSWER - Close or business (contractual) relationship
What are the three categories of legal liability? - CORRECT ANSWER - Tort, Statutory,
& Contractual
Tort Liability - CORRECT ANSWER - a wrongful action or omission that harms a person
or business, prompting the injured party to seek compensation in civil court. As a result, the
guilty person (the defendant or tortfeasor) bears legal liability; Differs from crime in that it is a
violation of a common or civil law
Statutory Liability - CORRECT ANSWER - liability arising out of specific rules or laws
(statutes) enacted by a legislative body providing direction or prohibition; overrides common
law; Ex/ Dram/Liquor, Americans w Disabilities Act, WC, etc.
Contractual Liability - CORRECT ANSWER - an agreement between two or more parties,
which creates an obligation to do or not to do a particular thing; Ex/ Lessor-Lessee, Owner-
Contractor, etc.
Warranty - CORRECT ANSWER - assurance made by seller of goods, either express or
implied, that references quality/fitness of goods/services & is relied upon by buyer of
goods/services
What are the 4 types of Tort Liability? - CORRECT ANSWER - Negligence, Intentional,
Strict, & Absolute
Negligence Tort Liability - CORRECT ANSWER - the failure to act as a reasonable
person would under the same or similar circumstances
, Intentional Torts - CORRECT ANSWER - An intentional or voluntary act where the
person or organization committing the act is expressly or implicitly deemed to have possessed
intent or purpose to injure
Example of an Intentional Tort - CORRECT ANSWER - Libel, wrongful entry/eviction,
assault/battery, false arrest, etc.
Strict Liability Tort - CORRECT ANSWER - concept applied by the courts in PRODUCT
liability suits in which a manufacturer, distributor or seller is liable for any and all defective or
hazardous products that unduly threaten a consumer's health and safety; Proximate cause NOT
applied & all that has to be proven is product that caused damage was defective
Absolute Liability - CORRECT ANSWER - liability without regard to fault; All that has
to be proved is that an injury or damage occurs because of the activities; ACCIDENTAL,
couldn't be helped
4 Requirements of a Negligent Tort - CORRECT ANSWER - Must be duty owed, breach
of that duty, actual injury/loss must occur, & there has to be close cause & effect (proximate
cause) relationship btwn breach of duty & injury/loss
Direct Liability - CORRECT ANSWER - results from the CONDUCT of a person or
organization that is responsible for injury or property damage to another
Example of Direct Liability - CORRECT ANSWER - Deem's Market, Inc. fails to clean
up a food spill in one of its grocery aisles, and a patron slips on the food, falls and breaks several
bones. The claimant sues Deem's Market, Inc. because it directly caused the injury
Vicarious Liability - CORRECT ANSWER - liability of one party based upon the liability
of another. It is said that liability is imputed (TRANSFERRED from one party to the other)
Example of Vicarious Liability - CORRECT ANSWER - While delivering groceries, an
employee of Deem's Market, Inc. causes an auto accident in which three people are injured. The
