Canadian Accredited Insurance Broker (CAIB) One Practice Exam

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How is negligence best defined?

  1. Intentional wrongdoing

  2. Carelessness in action or decision

  3. Failure to meet contractual obligations

  4. Deliberate disregard for safety regulations

The correct answer is: Carelessness in action or decision

Negligence is best defined as carelessness in action or decision. This refers to a situation where an individual fails to exercise the level of care that a reasonably prudent person would under similar circumstances. It encompasses actions or omissions that result in harm or injury to another party. For example, if someone drives recklessly and causes an accident, their negligence arises from the failure to take appropriate care while operating a vehicle. The focus is on lack of attention or failure to act in a way that avoids foreseeable risks, rather than on any intention to cause harm.

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