Casualty (Liability Basics)

Question 1

What is the best explanation of liability insurance?
It provides protection in the event the insured’s ________ causes bodily injury or property damage to others and the insured becomes legally obligated to pay damages

Answer 1

negligence

Question 2

The most a policy will pay for a loss arising out of any one accident, regardless of overall policy limits, is known as the:

Answer 2

Per occurrence limit

Question 3

The formal statement an insured provides to an insurer, including all the details an insurer needs to assess its liability following a loss, is known as a:

Answer 3

Proof of loss

Question 4

A liability policy provides coverage for ______ torts

Answer 4

unintentional

Question 5

An unintended and unforeseen event from which a loss results is called _____

Answer 5

accident

Question 6

What defines a tort?

Answer 6

a civil wrong

Question 7

If a driver experiences an unforeseeable incapacitation, they may not be charged with negligence under which common law defense? ______ ______ defense.

Answer 7

Sudden Emergency

Question 8

When a person participates in an activity where a certain type of injury is known to be probable, that person’s rights of recovery are barred or diminished under the doctrine of _____.

Answer 8

assumption of risk.

Question 9

Under ______ negligence, the award to the injured party is reduced by the amount of their own negligence.

Answer 9

comparative