Casualty (liability) Basic

Question 1

tort

Answer 1

a wrongful act, other than a breach of contract or a crime that violates a duty or the
rights of another and for which compensation may be sought from the responsible party.

Question 2

intentional tort

Answer 2

is a deliberate act that harms another and for which the injured party is
permitted by law to sue the wrongdoer.

Question 3

Liability insurance

Answer 3

provides coverage for most unintentional torts and excludes intentional torts

Question 4

Vicarious liability

Answer 4

is assigned to one party for the conduct of another, based solely on a
relationship between the two.

Question 5

Compensatory damages

Answer 5

are awarded to an injured party for actual loss sustained.

Question 6

Special damages

Answer 6

are compensatory damages for tangible expenses such as bills, loss of earnings,
and the costs to repair or replace damaged property

Question 7

General damages

Answer 7

are compensatory damages for pain, suffering, mental anguish, disfigurement,
and similar types of losses that cannot be objectively calculated.

Question 8

Bodily injury liability

Answer 8

is the legal liability arising from physical injury, including sickness, disease,
and death caused by the acts or omissions of an insured. Bodily injury liability expenses include
medical bills, lost wages, mental anguish, disfigurement, pain and suffering, etc.

Question 9

Property damage liability

Answer 9

pays for the legal liability arising from physical damage to tangible
property, including loss of use of that property, caused by the acts of an insured. Property
damage liability expenses include the actual cost of repair or replacement of the damaged
property as well as the inability to use damaged property (loss of use).

Question 10

Medical payments coverage

Answer 10

pays for necessary medical, surgical, x–ray, dental, ambulance,
hospital, professional nursing, and funeral expenses incurred by a third party on the insured’s
premises regardless of fault.

Question 11

Personal injury liability

Answer 11

is the legal liability arising from the wrongful conduct of the insured
resulting in injuries to one’s mental or emotional wellbeing and not bodily injury or property
damage.

Question 12

accident

Answer 12

is a sudden, unforeseen, unintended, and unplanned event from which loss or
damage results.

Question 13

Negligence

Answer 13

is a tort and, specifically, the failure to use the same degree of care a reasonable and
prudent person would use when given the same knowledge and set of circumstances. ( lack of common sense)

Question 14

Contributory negligence

Answer 14

is a defense for negligence in which the claimant was also negligent to
any degree.

Question 15

Comparative negligence

Answer 15

involves fault on the part of all parties and the damages are reduced in
proportion to the degree of negligence

Question 16

absolute liability,

Answer 16

a claimant does not have to prove fault in order to collect damages.

Question 17

Strict liability

Answer 17

applies when a manufacturer is held liable whether or not its product was
defective in causing injuries.

Question 18

excess policy

Answer 18

pays a covered claim after the primary policies exhaust their limits or deny
coverage.

Question 19

pro rata

Answer 19

loss payment provision requires each insurer to pay its share of a loss in proportion to
the coverage of that policy as it relates to the total of all insurance on the risk.

Question 20

limit of liability

Answer 20

is the dollar amount of coverage specified for a liability loss

Question 21

aggregate limit

Answer 21

is the maximum amount payable for loss per location or per person from all
occurrences within a policy period regardless of the number of separate accidents.

Question 22

split limit of liability

Answer 22

is the amount of coverage divided between bodily injury and property
damage.

Question 23

combined single limit

Answer 23

is the policy limit applied to either bodily injury or property damage as
needed or in any combination