Casuality Insurance Terms Flashcards
Causality
Coverage designated to address the liability of individuals or organization resulting from negligent acts
General liability
Update
Negligence
The law imposes a duty on everyone to act in a manner that will preserve the harmony of society
“Reasonable and prudent person”
Four elements of negligence
- Existence of a duty(law) to act in a certain way
- failure to live up to this duty
- injury must occur
- failure in duty must be proximate cause of the injury
Punitive damages
Negligence that provides a lesson is not covered by insurance
Non monetary losses
Proximate cause
Uninterrupted chain of events
Compensatory damages Awarded basis of two considerations.
Special damages
General damages
Special damages
Out of pocket bills that include
- Medical
- Lost wages
- Property
General damages
Compensation for an individual for the non monetary losses
Liability coverages include
Bodily injury (PI) Property Damage (PD)
Bodily injury
On behalf of the insured all sums which the insured becomes legally obligated to pay for bodily injury by the insurer
Including death
Trespassers
Enters property of another without the express or implied permission of the owner or occupier
Licensees
Individuals who enter ones property with the knowledge or toleration of the owner.
Bill collectors door to door sales
Invitees
Enters by invitation, express or implied
Connection with owners business
Provides a benefit to the owner
Attractive nuisance
Anything that attracts a child
Non-premises
We are required to act as a reasonable and prudent person would under given circumstances.
Mentally incompetent and infants meet age of reason
After 7
Absolute liability
Imposes the responsibility for injury caused by instrumentalities upon the defendant without requiring the plaintiff to prove negligence
Dangerous instrumentalities
Poisons, explosives,
Res Ispa Loquitur
“Thing speaks for itself”
Accident that results from someone’s negligence
Negligence Per Se
Conduct which is deemed negligent without argument because it was in violation of a statute
Vicarious liability
The liability of one person is based upon the tort (legal wrongs) of another
Independent contractors
Individuals who contract to do a particular job to specifications doing their own methods
Negligence defenses
Assumption of risk Contributory negligence Comparative negligence Last clear chance Avoidance consequence Intervening force
Assumption of risk
- Plaintiff has knowledge of risk
- Gave express or implied consent to engage in activity
Contributory negligence
J
Comparative negligence
A negligent plaintiff may recover a portion of damages in the same situation
Damages are reduced in direct proportion to “share if negligence”
Last clear chance
Defense or a modification of the contributory negligence doctrine
Avoidable consequence
Doctrine imposes a duty on the plaintiff to minimize damages after a loss
Intervening force
Is a force which actively operates in producing harm to another after an initial Tory has been committed
Personal Injury
An injury other than bodily injury arising out of wrongful actions
Theft
Any act of stealing
Burglary
Forcible entry
In or out of locked premises
The purpose of theft
Also includes forcing a watch person to open locked premises
Messenger
Employee that is insured and authorized to transport insured property outside the insured premesis
Custodian
Same as messenger but remains on the property
Securities
Negotiable- cashed in at any time
Non negotiable-evidence of debt issued in connection through credit
What do securities not include
Cash money
Contributory Negligence
Defendants must be 100% at fault for an accident
Claimant must be free of fault in order to collect
Proximate cause is
A reasonably foreseeable act or event that results in injury or damage.
Intervening cause
Doctrine that bars or reduces recovery to an injured person if the “intervening cause” set into motion a new chain of events