CPCU 553 Study Questions with Correct Answers

CPCU 553 Study Questions with Correct Answers Liability Loss Exposure - Answer-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 - Answer-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. Special Damages - Answer-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. General Damages - Answer-A monetary award to compensate a victim for losses, such as pain and suffering, that do not involve specific measurable expenses. Punitive Damages (exemplary damages) - Answer-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 - Answer-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. Tort - Answer-A wrongful act or an omission, other than a crime or a breach of contract, that invades a legally protected right. Negligence - Answer-The failure to exercise the degree of care that a reasonable person in a similar situation would exercise to avoid harming others.