AIC 32 - LIABILITY CLAIMS PRACTICES
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Damages - ANS Money claimed by or awarded to a party who has suffered a loss.Thir
Third-Party Claim - ANS A demand against an insured by a person or organization seeking to
recover damages that may be payable by the insured's liability insurance.
Consent-To-Settle Clause - ANS An insurance policy provision, usually found only in
professional liability policies, that require to insurer to obtain consent from the insured before
settling a claim.
Civil Rights Act of 1964 - ANS The law that prohibits discrimination in employment because of
race, color, religion, sex, or national origin, or on the basis of pregnancy, childbirth, or related
medical conditions.
Trespasser - ANS Someone who intentionally enters on a property of another without
permission or legal right to do so.
Attractive Nuisance Doctrine - ANS A doctrine treating children as licensee, or guest, rather
than a trespasser where there are conditions that are certain to attract them.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Known Trespasser - ANS An individual whose trespassing is tolerated by the land owner.
Licensee - ANS A person who has permission to enter onto another property.
Business Invitee - ANS Someone who has expressed or implied permission to be on the
premises for purpose of doing business.
Actual Notice - ANS Information that has been directly given to a land possessor about a
hazard on the premises. The land possessor has been given ___________ notice.
Constructive Notice (or Interpreted Notice) - ANS When a hazard has existed for a sufficient
length of time on a premises and the land possessor should have known about it.
Vicious Propensities - ANS The tendency of an animal to try and harm other people by acting
in some menacing way.
Negligent Hiring and/or Retention - ANS When an employer fails to perform an adequate
background check or is aware an employee might be a threat to the safety of others, the
employer could be liable by _____________________________.
Equal Pay Act of 1963 - ANS This' law prohibits differences in pay between women and men
for substantially the same work.
Age Discrimination in Employment Act of 1967 (ADEA) - ANS This law prohibits discrimination
by employers against any individual with respect to
hiring, terminations, promotions and demotions, compensation, and the terms and conditions
of employment on the basis of age when a worker is
forty years old or older.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Americans With Disabilities Act of 1990 (ADA) - ANS This law prohibits
workplace discrimination against workers with disabilities and requires
employers to make reasonable accommodations in the workplace for
workers with disabilities.
Family and Medical Leave Act of 1993 (FMLA) - ANS This law permits
employees to take an expanded period of leave without losing their jobs. It provides up to
twelve weeks without pay for purposes of handling family
and medical issues, including pregnancy, childbirth, and adoption.
"Long-Tail" Liability Claims - ANS Liability claims that are first made many months or years
after the initial exposure.
Tort - ANS A wrongful act other than a crime or breach of contract.
Negligence - ANS The failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others.
Tortfeasor - ANS A person or organization that has committed a tort.
Defendant - ANS The party in a lawsuit
against whom a complaint
is filed.
Plaintiff - ANS The person or entity who
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Damages - ANS Money claimed by or awarded to a party who has suffered a loss.Thir
Third-Party Claim - ANS A demand against an insured by a person or organization seeking to
recover damages that may be payable by the insured's liability insurance.
Consent-To-Settle Clause - ANS An insurance policy provision, usually found only in
professional liability policies, that require to insurer to obtain consent from the insured before
settling a claim.
Civil Rights Act of 1964 - ANS The law that prohibits discrimination in employment because of
race, color, religion, sex, or national origin, or on the basis of pregnancy, childbirth, or related
medical conditions.
Trespasser - ANS Someone who intentionally enters on a property of another without
permission or legal right to do so.
Attractive Nuisance Doctrine - ANS A doctrine treating children as licensee, or guest, rather
than a trespasser where there are conditions that are certain to attract them.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Known Trespasser - ANS An individual whose trespassing is tolerated by the land owner.
Licensee - ANS A person who has permission to enter onto another property.
Business Invitee - ANS Someone who has expressed or implied permission to be on the
premises for purpose of doing business.
Actual Notice - ANS Information that has been directly given to a land possessor about a
hazard on the premises. The land possessor has been given ___________ notice.
Constructive Notice (or Interpreted Notice) - ANS When a hazard has existed for a sufficient
length of time on a premises and the land possessor should have known about it.
Vicious Propensities - ANS The tendency of an animal to try and harm other people by acting
in some menacing way.
Negligent Hiring and/or Retention - ANS When an employer fails to perform an adequate
background check or is aware an employee might be a threat to the safety of others, the
employer could be liable by _____________________________.
Equal Pay Act of 1963 - ANS This' law prohibits differences in pay between women and men
for substantially the same work.
Age Discrimination in Employment Act of 1967 (ADEA) - ANS This law prohibits discrimination
by employers against any individual with respect to
hiring, terminations, promotions and demotions, compensation, and the terms and conditions
of employment on the basis of age when a worker is
forty years old or older.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Americans With Disabilities Act of 1990 (ADA) - ANS This law prohibits
workplace discrimination against workers with disabilities and requires
employers to make reasonable accommodations in the workplace for
workers with disabilities.
Family and Medical Leave Act of 1993 (FMLA) - ANS This law permits
employees to take an expanded period of leave without losing their jobs. It provides up to
twelve weeks without pay for purposes of handling family
and medical issues, including pregnancy, childbirth, and adoption.
"Long-Tail" Liability Claims - ANS Liability claims that are first made many months or years
after the initial exposure.
Tort - ANS A wrongful act other than a crime or breach of contract.
Negligence - ANS The failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others.
Tortfeasor - ANS A person or organization that has committed a tort.
Defendant - ANS The party in a lawsuit
against whom a complaint
is filed.
Plaintiff - ANS The person or entity who
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
