Chapter 23

Question 0

The courts determine the percentage of fault that both the defendant and claimant bear in causing the incident, awarding the claimant an award that is reduced to reflect his portion of fault

Answer 0

Comparative negligence

Question 1

A claimant cannot re over an award if he is partly at fault for causing the incident that resulted in his financial harm

Answer 1

Contributory negligence

Question 2

Designed to protect the insured business from non-automobile related bodily injury and property damage liability claims filed against the business by the general public, such as customers or visitors on the insureds property

Answer 2

Commercial general liability insurance CGL

Question 3

Lawsuit arising from the ownership, use, and maintainer of business building and grounds

Answer 3

Premises and operations liability

Question 4

Refers to lawsuits alleging that a defect in a firms product caused injuries to the claimant

Answer 4

Products liability

Question 5

Because the defect in workmanship is typically discovered after the contractor has completed the job

Answer 5

Completed operations liability

Question 6

Occurs if a firm accepts by contract a liability that it otherwise would not have

Answer 6

Contractual liability

Question 7

A contract transferring one party’s legal liability to another

Answer 7

Hold-harmless agreement

Question 8

Bodily Injury and property damage liability. Insurer also agrees to provide a legal defense for the insured.

Answer 8

Section 1 coverage A

Question 9

Property damage liability that the names insured may owe to the owner of the property in which the insured is doing business

Answer 9

Fire legal liability

Question 10

This portion of CGL covers tort liability arising from false arrest or imprisonment, libel or slander, copyright infringement, and invasion of privacy

Answer 10

Section 1 coverage B - personal and advertising injury

Question 11

This coverage pays for the cost of medical treatment administered to people injured on the insured premises or by action of the insured away from the premises regardless of the insureds legal liability

Answer 11

Section 1 coverage C - medical payments

Question 12

This section of CGL specifies whom the policy covers.

Answer 12

Section 2

Question 13

This section of CGL limits the insurers liability after a loss. The policy has overall (aggregate) limits and sublimity.

Answer 13

Section 3

Question 14

This section of CGL presents the policy conditions and explains such things as what the insured must do if it’s sued, how to file a claim, or how to cancel the policy

Answer 14

Section 4

Question 15

This section is the policy’s glossary in CGL

Answer 15

Section 5

Question 16

A type of liability policy in which the insurer agrees to pay only for claims made during the period covered by the policy. Thus, this format is designed to coverage for incidents that occur during the policy period but which results in litigation after the policy period expires

Answer 16

Claims-made form

Question 17

This policy pays for losses occurring during the policy period regardless of when the claim is filed

Answer 17

Occurrence basis liability

Question 18

Is a date preceding the beginning date for which the coverage is provided for an addition premium

Answer 18

Retroactive date

Question 19

Extends the time during which a claim may be filed for a loss that occurs during the policy period

Answer 19

Tail period or extended reporting period

Question 20

Can be purchased to provide coverage after underlying liability policies have been exhausted

Answer 20

Umbrella policy

Question 21

The things speaks for itself, and the burden is of the defendant for proving a lack of negligence

Answer 21

Res ispa loquitor

Question 22

The burden is also on the defendant to prove lack of negligence, but the producer can still defend itself by saying the injured party modified the product or failed to give heed to clearly stated warnings

Answer 22

Strict liability

Question 23

The party best able to detect and eliminate defects should be responsible for injuries caused by the product, the party best able to absorb the cost should be liable, injured parties often have too difficult a burden proving negligence in product liability cases

Answer 23

Arguments for strict liability

Question 24

Not standardized across all insurers, but most provide protection for a fairly common set of “wrongful acts”

Answer 24

Employment practices liability insurance EPLI

Question 25

Commits an insurer to pay all sums that the insured becomes legally obligated to pay as damages (after an applicable deductibles) resulting from providing or failing to provide professional services

Answer 25

Professional liability insurance, malpractice insurance, or errors and omissions insurance

Question 26

Added clearly stated responsibilities for directors, auditors, and attorneys of publicly traded companies. The makes directors and managers responsible for the effectiveness and efficiency of operations, for the reliability of financial reporting, and for the compliance with applicable laws and regulations

Answer 26

Sarbanes-Oxley Act of 2002

Question 27

Protects doctors

Answer 27

Medical malpractice insurance

Question 28

Medical liability insurance, defensive medical costs, medical device and pharmaceutical liability costs, liability-related administrative costs

Answer 28

Costs related to medical liability