7/13/25, 1:46
PM
CPCU 555: CH. 1 - 4 TERMS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
LATEST UPDATE VERSION 2025/2026 100%
ASSURED PASS|| SOLVED
Terms in this set (67)
Personal All tangible or intangible property
Property that is not real property.
Damages 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.
Separation A risk control technique that
isolates loss exposures from
one another to minimize the
adverse effect of a single loss.
A payment awarded by a court
to punish a defendant for a
1/
16
,7/13/25, 1:46
PM
Punitive Damages reckless, malicious, or deceitful
(exemplary act or to deter similar conduct;
damages) need not bear any relationship
to a party's actual damages.
Avoidance 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.
Liability loss Any condition or situation that
exposure presents the possibility of a
claim alleging legal
responsibility of a person or
business for injury or damage
suffered by another party.
Insurance A risk management technique
that transfers the potential
financial consequences of
certain specified loss exposures
from the insured to the insurer.
Negligence The failure to exercise the
degree of care that a
2/
16
, 7/13/25, 1:46
PM
reasonable person in a similar
situation would exercise to
avoid harming others.
General A monetary award to
Damages compensate a victim for losses,
such as pain and suffering, that
do not involve specific
measurable expenses.
Real Property Tangible property consisting of
(realty) land, all structures permanently
attached to the land, and
whatever is growing on the
land.
Civil Law 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.
Loss Reduction A risk control technique that reduces
the severity of a particular loss.
Duplication A risk control technique that
uses backups, spares, or copies
3/
16
PM
CPCU 555: CH. 1 - 4 TERMS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
LATEST UPDATE VERSION 2025/2026 100%
ASSURED PASS|| SOLVED
Terms in this set (67)
Personal All tangible or intangible property
Property that is not real property.
Damages 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.
Separation A risk control technique that
isolates loss exposures from
one another to minimize the
adverse effect of a single loss.
A payment awarded by a court
to punish a defendant for a
1/
16
,7/13/25, 1:46
PM
Punitive Damages reckless, malicious, or deceitful
(exemplary act or to deter similar conduct;
damages) need not bear any relationship
to a party's actual damages.
Avoidance 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.
Liability loss Any condition or situation that
exposure presents the possibility of a
claim alleging legal
responsibility of a person or
business for injury or damage
suffered by another party.
Insurance A risk management technique
that transfers the potential
financial consequences of
certain specified loss exposures
from the insured to the insurer.
Negligence The failure to exercise the
degree of care that a
2/
16
, 7/13/25, 1:46
PM
reasonable person in a similar
situation would exercise to
avoid harming others.
General A monetary award to
Damages compensate a victim for losses,
such as pain and suffering, that
do not involve specific
measurable expenses.
Real Property Tangible property consisting of
(realty) land, all structures permanently
attached to the land, and
whatever is growing on the
land.
Civil Law 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.
Loss Reduction A risk control technique that reduces
the severity of a particular loss.
Duplication A risk control technique that
uses backups, spares, or copies
3/
16
