Fundamentals of Insurance - Practice Exam 2
Latest Update 2025-2026 Exam 100 Questions
with 100% Verified Correct Answers Guaranteed
A+
__________ is based on the doctrine of precedence. The basic premise is that current
court decisions should follow previous decisions whenever the circumstances
underlying each are similar.
A) Criminal Law
B) Civil Law
C) Common Law
D) Contract Law - CORRECT ANSWER: C) Common Law
__________ Is concerned with setting disputes between individuals or other legal
entities in matters not involving a criminal act:
A) Criminal Law
B) Civil Law
C) Common Law
D) Contract Law - CORRECT ANSWER: B) Civil Law
,____________ Is a wrong which was committed by someone who knew the act was
illegal.
A) Negligence
B) Unintentional Tort
C) Intentional Tort
D) Careless Tort - CORRECT ANSWER: C) Intentional Tort
______________ Involves a careless invasion of another's rights. when injury or
damage results the wronged is entitled to sue for damages.
A) Negligence
B) Unintentional Tort
C) Intentional Tort
D) Careless Tort - CORRECT ANSWER: B) Unintentional Tort
A Licensee is defined as:
A) One who comes on to the premises for his own purpose but with the occupiers
consent
B) A Person invited onto the land by invitation or for the owners business (customer)
,C) A person who comes onto premises without permission of the occupier
D) None of the above - CORRECT ANSWER: A) One who comes on to the premises for
his own purpose but with the occupiers consent
A Mortgagee is anyone having: *(Select best answer)*
A) Money lent to them
B) An Insurable interest in the insured property
C) A Mortgage on a house
D) None of the above - CORRECT ANSWER: B) An Insurable interest in the insured
property
All of the following are examples where strict liability would apply, select the exception:
A) Hazardous activities which are inherently dangerous regardless of the care taken
B) Performance of a reasonable task in an unreasonable setting
C) Applying heat to light a fire within its usual receptacle
D) Allowing the spread of an intentionally started fire - CORRECT ANSWER: C)
Applying heat to light a fire within its usual receptacle
An Individual who commits a wrong against an innocent party is refereed to as a: *select
the BEST answer*
, A) Tortfeasor
B) Tort
C) Joint Tortfeasor
D) Wrongdoer - CORRECT ANSWER: A) Tortfeasor
An insurer is not required to provide coverage when losses are caused by:
A) Application of heat
B) Lightening / Electrical surges that cause damage to electrical devices
C) Contamination by radioactive material
D) All of the Above
E) A and C - CORRECT ANSWER: D) All of the Above
Applicants who are not prepared to take measures to reduce the chance of loss
because "everything is insured" are a:
A) Moral Hazard
B) Physical Hazard
C) None of the above - CORRECT ANSWER: A) Moral Hazard
Latest Update 2025-2026 Exam 100 Questions
with 100% Verified Correct Answers Guaranteed
A+
__________ is based on the doctrine of precedence. The basic premise is that current
court decisions should follow previous decisions whenever the circumstances
underlying each are similar.
A) Criminal Law
B) Civil Law
C) Common Law
D) Contract Law - CORRECT ANSWER: C) Common Law
__________ Is concerned with setting disputes between individuals or other legal
entities in matters not involving a criminal act:
A) Criminal Law
B) Civil Law
C) Common Law
D) Contract Law - CORRECT ANSWER: B) Civil Law
,____________ Is a wrong which was committed by someone who knew the act was
illegal.
A) Negligence
B) Unintentional Tort
C) Intentional Tort
D) Careless Tort - CORRECT ANSWER: C) Intentional Tort
______________ Involves a careless invasion of another's rights. when injury or
damage results the wronged is entitled to sue for damages.
A) Negligence
B) Unintentional Tort
C) Intentional Tort
D) Careless Tort - CORRECT ANSWER: B) Unintentional Tort
A Licensee is defined as:
A) One who comes on to the premises for his own purpose but with the occupiers
consent
B) A Person invited onto the land by invitation or for the owners business (customer)
,C) A person who comes onto premises without permission of the occupier
D) None of the above - CORRECT ANSWER: A) One who comes on to the premises for
his own purpose but with the occupiers consent
A Mortgagee is anyone having: *(Select best answer)*
A) Money lent to them
B) An Insurable interest in the insured property
C) A Mortgage on a house
D) None of the above - CORRECT ANSWER: B) An Insurable interest in the insured
property
All of the following are examples where strict liability would apply, select the exception:
A) Hazardous activities which are inherently dangerous regardless of the care taken
B) Performance of a reasonable task in an unreasonable setting
C) Applying heat to light a fire within its usual receptacle
D) Allowing the spread of an intentionally started fire - CORRECT ANSWER: C)
Applying heat to light a fire within its usual receptacle
An Individual who commits a wrong against an innocent party is refereed to as a: *select
the BEST answer*
, A) Tortfeasor
B) Tort
C) Joint Tortfeasor
D) Wrongdoer - CORRECT ANSWER: A) Tortfeasor
An insurer is not required to provide coverage when losses are caused by:
A) Application of heat
B) Lightening / Electrical surges that cause damage to electrical devices
C) Contamination by radioactive material
D) All of the Above
E) A and C - CORRECT ANSWER: D) All of the Above
Applicants who are not prepared to take measures to reduce the chance of loss
because "everything is insured" are a:
A) Moral Hazard
B) Physical Hazard
C) None of the above - CORRECT ANSWER: A) Moral Hazard
