7/13/25, 12:15
PM
CPCU 552 - FULL SET EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
LATEST UPDATE GRADED A++ 2025/2026
Terms in this set (326)
These specialty policies are for specific
fields, such as school boards,
municipalities, and not-for-profit orgs
Options to cover these outside directors
1. Cover them under the insured corp's
Specialty D&O D&O policy by adding a coverage
Coverages extension or endorsement
2. Obtain a separate policy ("Outside Directors
Liability Policy")
3. Side A-only coverage, which is excess
to the corp's D&O policy and covers the
specific person
4. Enhanced Side-A only coverage, Side-
A only DIC, or DIC only (Differences in
Conditions), which have broader
wording than Side-A only coverage
Liability imposed by a court or by a
1/57
,7/13/25, 12:15
PM
statute in the absence of fault when harm
Strict Liability (absolute results from activities or conditions that
liability) are extremely dangerous, unnatural,
ultrahazardous, extraordinary,
abnormal, or inappropriate.
Hold-harmless A contractual provision that obligates one
agreement (or of the parties to assume the legal liability
indemnity of another party.
agreement)
2/57
,7/13/25, 12:15
PM
liability arising from bodily injury or
property damage caused by an accident
that either:
(1) occurs on an organization's owned, leased, or
rented premises OR
(2) arises out of the organization's
ongoing (as opposed to completed)
Prem/Op Liability operations but occurs away from the
premises
How prem/op can occur:
1. Based on negligence (most common)
2. Based on strict liability
3. Due to hold-harmless agreements
4. Arising out of use of certain types f
mobile equipment (such as bulldozers
and cranes)
May be due to negligence, misrepresentation,
fraud, deceit, and breach of warranty.
In products liability actions, the plaintiff
must prove that the defendant failed to
Product take reasonable care in the design,
s manufacture, distribution, or sale of the
3/57
, 7/13/25, 12:15
PM
Liability article that
(under caused the injury.
Prod/Co
) Many products liability lawsuits are based on
strict liability in tort.
- In contrast to negligence actions, under strict
liability, the conduct of the
manufacturer, distributor, or retailer is
irrelevant, and the focus is on the safety
of the product itself.
What 3 elements 1. The product was defective when it left
must a plaintiff the manufacturer's or supplier's custody
prove to recover in a or control
products liability suit 2. The defective condition make the product
based on strict unreasonably dangerous
liability in tort? 3. The defective product was the proximate cause
of the plaintiff's injury
1. Healthcare professionals liability (also known
3 general as medical malpractice)
categories of 2. Financial and legal professionals liability (also
professional known as legal malpractice)
liability: 3. Architects and engineers liability
(also known as architects and
engineers malpractice).
3 insuring agreements Coverage A—Bodily Injury and
4/57
PM
CPCU 552 - FULL SET EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
LATEST UPDATE GRADED A++ 2025/2026
Terms in this set (326)
These specialty policies are for specific
fields, such as school boards,
municipalities, and not-for-profit orgs
Options to cover these outside directors
1. Cover them under the insured corp's
Specialty D&O D&O policy by adding a coverage
Coverages extension or endorsement
2. Obtain a separate policy ("Outside Directors
Liability Policy")
3. Side A-only coverage, which is excess
to the corp's D&O policy and covers the
specific person
4. Enhanced Side-A only coverage, Side-
A only DIC, or DIC only (Differences in
Conditions), which have broader
wording than Side-A only coverage
Liability imposed by a court or by a
1/57
,7/13/25, 12:15
PM
statute in the absence of fault when harm
Strict Liability (absolute results from activities or conditions that
liability) are extremely dangerous, unnatural,
ultrahazardous, extraordinary,
abnormal, or inappropriate.
Hold-harmless A contractual provision that obligates one
agreement (or of the parties to assume the legal liability
indemnity of another party.
agreement)
2/57
,7/13/25, 12:15
PM
liability arising from bodily injury or
property damage caused by an accident
that either:
(1) occurs on an organization's owned, leased, or
rented premises OR
(2) arises out of the organization's
ongoing (as opposed to completed)
Prem/Op Liability operations but occurs away from the
premises
How prem/op can occur:
1. Based on negligence (most common)
2. Based on strict liability
3. Due to hold-harmless agreements
4. Arising out of use of certain types f
mobile equipment (such as bulldozers
and cranes)
May be due to negligence, misrepresentation,
fraud, deceit, and breach of warranty.
In products liability actions, the plaintiff
must prove that the defendant failed to
Product take reasonable care in the design,
s manufacture, distribution, or sale of the
3/57
, 7/13/25, 12:15
PM
Liability article that
(under caused the injury.
Prod/Co
) Many products liability lawsuits are based on
strict liability in tort.
- In contrast to negligence actions, under strict
liability, the conduct of the
manufacturer, distributor, or retailer is
irrelevant, and the focus is on the safety
of the product itself.
What 3 elements 1. The product was defective when it left
must a plaintiff the manufacturer's or supplier's custody
prove to recover in a or control
products liability suit 2. The defective condition make the product
based on strict unreasonably dangerous
liability in tort? 3. The defective product was the proximate cause
of the plaintiff's injury
1. Healthcare professionals liability (also known
3 general as medical malpractice)
categories of 2. Financial and legal professionals liability (also
professional known as legal malpractice)
liability: 3. Architects and engineers liability
(also known as architects and
engineers malpractice).
3 insuring agreements Coverage A—Bodily Injury and
4/57
