1 | Page
CPCU 553 Personal Insurance Questions
and Correct Answers/ Latest Update /
Already Graded
Loss exposure
Ans: Any condition or situation that presents a possibility of loss, whether or
not an actual loss occurs.
Cause of loss (peril)
Ans: The actual means by which property is damaged or destroyed.
Property loss exposure
Ans: A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage (including
destruction, taken, or loss of use) to property in which that person or
organization has a financial interest.
Real property (realty)
,2 | Page
Ans: Tangible property consisty of land, all structures permanently
attached to the land, and whatever is growing on the land.
Personal property
Ans: All tangible or intangible property that is not real property.
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.
Damages
Ans: Money claimed by, or a monetary award to, a party who has
suffered bodily injury or property damage for which another party is
legally responsible.
General damages
,3 | Page
Ans: A monetary award to compensate a victim for losses, such as pain
and suffering, that do not involve specific measurable expenses.
Special damages
Ans: A form of compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured person's loss,
such as medical expenses or lost wages.
Punitive damages (exemplary damages)
Ans: A payment awarded by a court to punish a defendant for a reckless,
malicious, or deceitful act to deter similar conduct; the award need not
bear any relation to a party's actual damages.
Civil law
Ans: A classification of law that applies to legal matters not governed by
criminal law and that protects rights and provides remedies for breaches
of duties owed to others.
, 4 | Page
Tort
Ans: A wrongful act or an ommission, 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.
Personal financial planning loss exposures
Ans: Life, health, and retirement related loss exposures
Temporary partial disability (TPD)
Ans: A disability caused by a work-related injury or disease that
temporarily limits the extent to which a worker can perform job duties; the
worker is eventually able to return to full duties and hours.
Temporary total disability (TTD)
CPCU 553 Personal Insurance Questions
and Correct Answers/ Latest Update /
Already Graded
Loss exposure
Ans: Any condition or situation that presents a possibility of loss, whether or
not an actual loss occurs.
Cause of loss (peril)
Ans: The actual means by which property is damaged or destroyed.
Property loss exposure
Ans: A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage (including
destruction, taken, or loss of use) to property in which that person or
organization has a financial interest.
Real property (realty)
,2 | Page
Ans: Tangible property consisty of land, all structures permanently
attached to the land, and whatever is growing on the land.
Personal property
Ans: All tangible or intangible property that is not real property.
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.
Damages
Ans: Money claimed by, or a monetary award to, a party who has
suffered bodily injury or property damage for which another party is
legally responsible.
General damages
,3 | Page
Ans: A monetary award to compensate a victim for losses, such as pain
and suffering, that do not involve specific measurable expenses.
Special damages
Ans: A form of compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured person's loss,
such as medical expenses or lost wages.
Punitive damages (exemplary damages)
Ans: A payment awarded by a court to punish a defendant for a reckless,
malicious, or deceitful act to deter similar conduct; the award need not
bear any relation to a party's actual damages.
Civil law
Ans: A classification of law that applies to legal matters not governed by
criminal law and that protects rights and provides remedies for breaches
of duties owed to others.
, 4 | Page
Tort
Ans: A wrongful act or an ommission, 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.
Personal financial planning loss exposures
Ans: Life, health, and retirement related loss exposures
Temporary partial disability (TPD)
Ans: A disability caused by a work-related injury or disease that
temporarily limits the extent to which a worker can perform job duties; the
worker is eventually able to return to full duties and hours.
Temporary total disability (TTD)
