Property and Casualty Insurance Practice Exam

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What is a tort in the context of legal terminology?

A type of property insurance
A civil wrong that violates the rights of another
A criminal act leading to imprisonment
A legal agreement between two parties

The correct answer is: A civil wrong that violates the rights of another

In legal terminology, a tort refers to a civil wrong that causes harm or loss to another individual, thereby violating their rights. This can encompass a wide range of wrongful acts, which may include negligence, defamation, assault, and more. When a person commits a tort, the injured party may pursue a civil lawsuit to recover damages, seeking compensation for their losses and holding the responsible party accountable for their actions. Understanding torts is crucial because they form the basis of personal injury and liability claims, which are key components of many insurance policies. Insurers often provide coverage for legal liabilities arising from tort actions, making this concept fundamental to both legal practice and the insurance industry. The other options represent different concepts unrelated to tort law. Property insurance refers specifically to the coverage of physical assets, criminal acts pertain to violations of criminal law with potential penalties such as imprisonment, and legal agreements between parties are referred to as contracts, which are distinct from the tort framework.