Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

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Prepare for the CAIB Three Exam with our practice quiz. Enhance your knowledge with interactive flashcards, multiple-choice questions, and detailed explanations. Ensure your readiness to excel!

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Which of the following is an example of an activity that imposes strict liability?

  1. Driving a car

  2. Setting off explosives

  3. Preparing food

  4. Renting property

The correct answer is: Setting off explosives

The example of an activity that imposes strict liability is setting off explosives. Strict liability refers to a legal standard where a party is held responsible for their actions or products regardless of fault or negligence. In the case of setting off explosives, this activity is inherently dangerous and poses significant risks to the public and surrounding property. Therefore, individuals or companies engaged in this activity can be held liable for any damages or injuries that result from it, even if they took all necessary precautions. This strict liability framework encourages safety and responsibility in conducting such high-risk activities because it is acknowledged that even the most careful operator can have accidents that result in harm. Other activities listed—driving a car, preparing food, and renting property—may carry varying degrees of personal responsibility and negligence standards, making them less suitable as examples of strict liability compared to the inherently dangerous activity of handling explosives.