Chapter 11 Flashcards
Explain what is personal liability
Liability insurance for an individuals persons,a liability exposure such as premises, personal activities, some contracts, and certain incidental coverages. This insurance does not include automobile liability or business-related losses
Define dwelling
A shelter intended or used as a space in which people live
Define legal liability
Liability imposed by law on individuals or corporations to pay for harm done to others. Such law may be the common law, statue law, or customs that over a period of time have taken on the same status as law. Legal liability may also be assumed under the terms of a contract
Define negligence
Failure to use the degree of care expected from a reasonable and prudent person
Define nuisance
In law, a class of wrong that arises out of unreasonable, unwarranted, or unlawful use by a person of his or her own property, whether that property be real or personal or from his or her own improper, indecent, or unlawful personal conduct and producing an annoyance, inconvenience, discomfort, or to their property that the law would presume a consequential damage
Define special damages
Actual loss from the natural, not the necessary, consequences of the subject of complaint
Example: medical payments, car repairs
Define economic loss
Damage or loss that can be quantified in money. Also known as pecuniary loss
Define general damages
Damages awarded by a court of law for the pain and suffering of an indivual
Define attractive nuisance
A legal tort doctrine that holds that any person who has or creates any condition on her premises, private, or public, that may reasonable be considered to pose a danger to children and at the same time attract them (to it) has a duty to take precautions as a reasonable person would do to prevent injury to minors of tender years
Define occupant
One who has the right because of possession in or control over certain property or premises
Define licensee
A person who has permission to enter the premises for his or her own purposes
Define invitee
A person who is expressly or impliedly invited onto the premises for the purpose involving economical benefit to the occupier for the premises
For example a customer entering into a store for the purpose of making a purchase
Define contractual entrant
A person who enters onto the premises under contract, with the occupier
For example a hotel guest
Define strict liability
Liability imposed by a court or by a statue in the absence of fault when harm results from activities or conditions that are extremely dangerous, unnatural, hazardous, extraordinary, abnormal, or inappropriate
Define scienter (scienti non fit injuria)
Actual or presumed degree of knowledge that makes a person legally responsible for his or her actions or failure to act.
For example owner of vicious dog is deemed to know its disposition and to properly secure it from causing damage or injury to others
Define hold-harmless agreement
An agreement that allows one party to protect another party against any future losses or claims that may result from a particular activity.
Also known as an indemnity agreement
Define indemnitee
The person or organization who is held harmless in a contract (by the indemnitor)
Explain tenant legal liability
Is legal liability for property damage to premises or their contents that insureds are using, renting, or have in their custody or control caused by fire, explosion, water damage, or smoke
Explain employers liability
Is legal liability for bodily injury to residence employees arising out of and in the course of their employment by the insured
There is no coverage for liability imposed upon or assumed by the insured under any works compensation statute
Explain supplementary payments under legal liability coverage E
-All expenses the insurer incurs
-All costs charged against the insured in any suits insured under coverage E
-Any interests accrued after judgment on the part of the judgement within the amount insurance of coverage E
-Premiums for appeal bonds required in any insured lawsuit
-Expenses that the insured incurs for emergency medical or surgical treatment to others
-Reasonable expenses, including loss of earnings, up to a specified dollar amount per day
Explain voluntary compensation for residence employees
Benefits for the following:
-Loss of life, limb, or hearing
-Weekly indemnity for disability
-medical expenses
Should the injured residence employee sue the insured, the insurer could withdraw the benefits available under this part of the policy
Explain the extension of coverage for motorized vehicles under a homeowners policy
Vehicles such as lawn mower, snow blowers, small garden tractors, and golf carts are insured
Motorized equipment, such as wheelchairs and scooters, designed to carry persons with a physically disability, is also insured
What exclusions are common in personal liability policies?
-Invasion, war or civil, insurrection, rebellion, revolution, terrorist acts, or military or armed forces engaged in hostilities
-Bodily injury or property damage which is required to be insured by nuclear insurance association of Canada
-business pursuits or business use of the insured demises except as otherwise specified policy
-the rendering of or failure to render any professional service
-liability imposed by any workers compensation
-causes by any intentional or criminal act
-any type of abuse
-the transmission of communicable disease by the insured
In the event of a personal liability claim under a homeowners policy, the insured must comply with what provisions?
Notice of accident or occurrence-prompt notice with all necessary details
Cooperation-help insured with the investigation in any way asked
Unauthorized settlement-insured will not voluntary make any payment
Action against insurer-the insured will not bring suit against the insurer until all terms of the policy have been met
Insurance under more than one policy-if there is other insurance that applies to a loss or claim this policy will be considered excess insurance
Liability claims arise under civil law, which imposes liability under what three categories?
Negligence
Nuisance
Breach of contract
Tortfesor negligence can take what forms?
An intentional act
Unintentional carelessness
A failure to act
What are the three elements necesssray to constitute an actionable tort?
(ABC rule)
A legal duty of care must be owed
Breach of contract
Caused the damage
What case was neighbour defined in?
Donoghue v Stevenson [1932] house of lords
What factors are considered in deciding whether the duty owed to a trespasser has been breached?
Gravity and likelihood of probable injury
Character of the intrusion
Nature of the premises
Knowledge the occupier had of the trespassers presence
Cost to the occupier of preventing harm
What are the only defences against a finding of strict liability?
-It was an act of god (the dangerous thing escaped as a result of an unforeseen, unpreventable natural force)
-The escape was caused by the third party’s actions
-The escape was the deliberate act of an outside party
-The dangerous thing was on the insureds land with the implied or express consent of the third party
-The dangerous thing was authorized by statue to be brought and kept on the insureds land
What is Ontario’s law about liability for animals?
The owner of a dog is liable for damage resulting from a bite or attack by the dog on another person or domestic animal
The liability of the owner does not depend upon knowledge of the propensity of the dog or fault or negligence on the part of the owner
What is Manitoba’s law about liability for animals?
Provides that the owner of an animal is liability for damages resulting from harm that the animal causes to a person or to the property
Parents are not held liable for negligence of their child’s unless what scenarios?
The child was acting on the parents express instructions or under their authority
The child was employed by the parent and acting within the scope of the employment
The damage was caused by dangerous thing or animal that the parents had allowed the child to control, such as a motor vehicle
What certain categories with respect to occupiers liability, deems persons to have willingly assumed the risk?
-rural premises that are used for agricultural purposes
-vacant or underdeveloped premises
-forested or wilderness premises
-golf courses that are not open for playing
-utility rights-of-way and corridors, excluding structures located on them
-unopened road allowances
-private roads that are reasonable identified by notices
-recreational trails that are reasonable identified by notices
What is involved for investigating liability claims?
Understanding human behaviour
Determining scope of investigation
Determining who is responsible
Investigating slip-and-fall claims
Dealing with costs of litigation
Researching case law
What are the special limitations under a homeowners policy?
Watercraft
Motorized vehicles
Trailers
Business and business property
