CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE
140 QUESTIONS AND CORRECT DETAILED ANSWERS
Criminal law - (ANSWER)The branch of the law that imposes penalties for wrongs against society. And
insurance can not respond to criminal charges
legal liability - (ANSWER)The legally enforceable obligation of a person or an organization to pay a sum of
money (called damages) to another person or organization.
liability loss - (ANSWER)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.
liability insurance - (ANSWER)insurance that pays damages assessed against an insured
What are 3 sources of legal liability? - (ANSWER)1.) Torts
2.) Contracts
3.) Statutes
What is a tort? - (ANSWER)A wrongful act or an omission, other than a crime or a breach of contract,
that invades a legally protected right
What are the 3 types of torts? - (ANSWER)1.) Negligence
2.) Intentional
3.) Strict liability
What is a negligence tort? - (ANSWER)The failure to exercise the degree of care that a reasonable person
in a similar situation would exercise to avoid harming others
What is an intentional tort? - (ANSWER)An act committed by a person who knows (or should know) that
his act will harm another person
,What is strict liability? - (ANSWER)Liability imposed by a court or by a statute in the absence of fault
when harm results from activities or conditions that are extremely dangerous, unnatural, ultrahazardous,
extraordinary, abnormal or inappropriate. Example= Blasting sites and worker's compensation
What is a hold-harmless agreement or an indemnity agreement? - (ANSWER)A contractual provision that
obligates one of the parties to assume the legal liability of another party
What is a statute? - (ANSWER)a written law passed by a legislative body at either the federal or state
level
What are the 5 pre-accident techniques? - (ANSWER)1.) Cost-effectiveness
2.) Legal requirements
3.) Insurer requirements and recommendations
4.) Public Perception
5.) Management risk aversion
loss prevention - (ANSWER)A risk control technique that reduces the frequency of a particular loss (a sign
versus action)
loss reduction - (ANSWER)A risk control technique that reduces the severity of a particular loss.
loss avoidance - (ANSWER)a risk control technique that involves ceasing or never undertaking an activity
so that the possibility of a future loss occurring from that activity is eliminated
What is common law or case law? - (ANSWER)Laws that develop out of court decisions in particular
cases and establish precedents for future cases
What is tort law? - (ANSWER)the branch of civil law that deals with civil wrongs other than breaches of
contract
, What is statutory law? - (ANSWER)A formal law passed by federal, state or local legislature. Example=
Workers Compensation
What is a warranty? - (ANSWER)A contract between a manufacturer or seller and the consumer
concerning the product. They may be either expressly stated or implied by law.
what is coverage A of the Commercial General Liability (CGL) form? - (ANSWER)Bodily injury and
property damage liability which is broken down to:
1.) Premise and operations
2.) Products and completed operations
What are the 7 requirements for coverage A on the CGL form? - (ANSWER)1.) The insured must be legally
obligated to pay damages
2.) The damages must result from BI or PD as defined in the policy
3.) The policy must apply to the BI or PD
4.) The BI or PD must be caused by an occurrence
5.) The occurrence must take place in the coverage territory
6.) The BI or PD must occur during the policy period
7.) The BI or PD must not be known to the NI or certain other persons before the policy period
What is coverage B of the CGL? - (ANSWER)Personal and Advertising Injury Liability (NO property
damage)
What is covered under Personal and advertising injury? - (ANSWER)1.) False arrest
2.) Malicious prosecution
3.) Wrongful eviction
4.) Oral or written slander
5.) Oral or written invasion of personal privacy
6.) stolen advertisements
7.) copy right infringment
140 QUESTIONS AND CORRECT DETAILED ANSWERS
Criminal law - (ANSWER)The branch of the law that imposes penalties for wrongs against society. And
insurance can not respond to criminal charges
legal liability - (ANSWER)The legally enforceable obligation of a person or an organization to pay a sum of
money (called damages) to another person or organization.
liability loss - (ANSWER)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.
liability insurance - (ANSWER)insurance that pays damages assessed against an insured
What are 3 sources of legal liability? - (ANSWER)1.) Torts
2.) Contracts
3.) Statutes
What is a tort? - (ANSWER)A wrongful act or an omission, other than a crime or a breach of contract,
that invades a legally protected right
What are the 3 types of torts? - (ANSWER)1.) Negligence
2.) Intentional
3.) Strict liability
What is a negligence tort? - (ANSWER)The failure to exercise the degree of care that a reasonable person
in a similar situation would exercise to avoid harming others
What is an intentional tort? - (ANSWER)An act committed by a person who knows (or should know) that
his act will harm another person
,What is strict liability? - (ANSWER)Liability imposed by a court or by a statute in the absence of fault
when harm results from activities or conditions that are extremely dangerous, unnatural, ultrahazardous,
extraordinary, abnormal or inappropriate. Example= Blasting sites and worker's compensation
What is a hold-harmless agreement or an indemnity agreement? - (ANSWER)A contractual provision that
obligates one of the parties to assume the legal liability of another party
What is a statute? - (ANSWER)a written law passed by a legislative body at either the federal or state
level
What are the 5 pre-accident techniques? - (ANSWER)1.) Cost-effectiveness
2.) Legal requirements
3.) Insurer requirements and recommendations
4.) Public Perception
5.) Management risk aversion
loss prevention - (ANSWER)A risk control technique that reduces the frequency of a particular loss (a sign
versus action)
loss reduction - (ANSWER)A risk control technique that reduces the severity of a particular loss.
loss avoidance - (ANSWER)a risk control technique that involves ceasing or never undertaking an activity
so that the possibility of a future loss occurring from that activity is eliminated
What is common law or case law? - (ANSWER)Laws that develop out of court decisions in particular
cases and establish precedents for future cases
What is tort law? - (ANSWER)the branch of civil law that deals with civil wrongs other than breaches of
contract
, What is statutory law? - (ANSWER)A formal law passed by federal, state or local legislature. Example=
Workers Compensation
What is a warranty? - (ANSWER)A contract between a manufacturer or seller and the consumer
concerning the product. They may be either expressly stated or implied by law.
what is coverage A of the Commercial General Liability (CGL) form? - (ANSWER)Bodily injury and
property damage liability which is broken down to:
1.) Premise and operations
2.) Products and completed operations
What are the 7 requirements for coverage A on the CGL form? - (ANSWER)1.) The insured must be legally
obligated to pay damages
2.) The damages must result from BI or PD as defined in the policy
3.) The policy must apply to the BI or PD
4.) The BI or PD must be caused by an occurrence
5.) The occurrence must take place in the coverage territory
6.) The BI or PD must occur during the policy period
7.) The BI or PD must not be known to the NI or certain other persons before the policy period
What is coverage B of the CGL? - (ANSWER)Personal and Advertising Injury Liability (NO property
damage)
What is covered under Personal and advertising injury? - (ANSWER)1.) False arrest
2.) Malicious prosecution
3.) Wrongful eviction
4.) Oral or written slander
5.) Oral or written invasion of personal privacy
6.) stolen advertisements
7.) copy right infringment
