Casualty ins basics

Question 1

Loss ratio formula

Answer 1

(Incurred losses + Loss adjusting expense) / Earned premium = loss ratio

Question 2

Negligence

Answer 2

the failure to use the care that a reasonable, prudent person would have any taken under the same or similar circumstances

Question 3

torts

Answer 3

a wrongful act or the violation of someone’s rights that leads to legal liability. can be intentional or unintentional (negligence)

Question 4

intentional tort

Answer 4

any deliberate act that causes harm to another person regardless of intent

Question 5

unintentional tort

Answer 5

the result of acting without proper care. referred to as negligence

Question 6

elements of a negligent act

Answer 6

all 4 elements must be present in order to prove negligence

1. legal duty: to act :
2. standard of care: acting as a resonable person would act
3. unbroken chain of events: beginning with the negligence and leading to the injury or damage
4. actual loss or damage: the negligence must have been the cause without which the accident would not have happened (direct liability)

Question 7

proximate cause

Answer 7

an act or event considered a natural or reasonably foreseeable cause of damage or event that occurs and damages prop or injures the plaintiff. the negligence must have been the proximate cause of the damage.