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CPCU 552, Chapter 1 Questions and Correct
Answers
liability loss Ans: any loss that a person or an organization
sustains as a result of a claim or suit against that person or
organization by someone seeking damages or some other remedy
permitted by law
legal liability Ans: The legally enforceable obligation of a person
or an organization to pay a sum of money (called damages) to
another person or organization
Civil law Ans: a classification of law that applied to legal matters
not governed by criminal law and the protects rights and provides
remedies for breaches of duties owed to others
Criminal law Ans: The branch of the law that imposed penalties
for wrongs against society
tort Ans: a wrongful act or an omission other than a crime or a
breach of contract that invades a legally protected right
negligence Ans: the failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to avoid
harming others
© 2025 All rights reserved
CPCU 552, Chapter 1 Questions and Correct
Answers
liability loss Ans: any loss that a person or an organization
sustains as a result of a claim or suit against that person or
organization by someone seeking damages or some other remedy
permitted by law
legal liability Ans: The legally enforceable obligation of a person
or an organization to pay a sum of money (called damages) to
another person or organization
Civil law Ans: a classification of law that applied to legal matters
not governed by criminal law and the protects rights and provides
remedies for breaches of duties owed to others
Criminal law Ans: The branch of the law that imposed penalties
for wrongs against society
tort Ans: a wrongful act or an omission other than a crime or a
breach of contract that invades a legally protected right
negligence Ans: the failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to avoid
harming others
© 2025 All rights reserved
