Chapter 23 Flashcards
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
Comparative negligence
A claimant cannot re over an award if he is partly at fault for causing the incident that resulted in his financial harm
Contributory negligence
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
Commercial general liability insurance CGL
Lawsuit arising from the ownership, use, and maintainer of business building and grounds
Premises and operations liability
Refers to lawsuits alleging that a defect in a firms product caused injuries to the claimant
Products liability
Because the defect in workmanship is typically discovered after the contractor has completed the job
Completed operations liability
Occurs if a firm accepts by contract a liability that it otherwise would not have
Contractual liability
A contract transferring one party’s legal liability to another
Hold-harmless agreement
Bodily Injury and property damage liability. Insurer also agrees to provide a legal defense for the insured.
Section 1 coverage A
Property damage liability that the names insured may owe to the owner of the property in which the insured is doing business
Fire legal liability
This portion of CGL covers tort liability arising from false arrest or imprisonment, libel or slander, copyright infringement, and invasion of privacy
Section 1 coverage B - personal and advertising injury
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
Section 1 coverage C - medical payments
This section of CGL specifies whom the policy covers.
Section 2
This section of CGL limits the insurers liability after a loss. The policy has overall (aggregate) limits and sublimity.
Section 3
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
Section 4
This section is the policy’s glossary in CGL
Section 5
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
Claims-made form
This policy pays for losses occurring during the policy period regardless of when the claim is filed
Occurrence basis liability
Is a date preceding the beginning date for which the coverage is provided for an addition premium
Retroactive date
Extends the time during which a claim may be filed for a loss that occurs during the policy period
Tail period or extended reporting period
Can be purchased to provide coverage after underlying liability policies have been exhausted
Umbrella policy
The things speaks for itself, and the burden is of the defendant for proving a lack of negligence
Res ispa loquitor
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
Strict liability
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
Arguments for strict liability
Not standardized across all insurers, but most provide protection for a fairly common set of “wrongful acts”
Employment practices liability insurance EPLI
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
Professional liability insurance, malpractice insurance, or errors and omissions insurance
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
Sarbanes-Oxley Act of 2002
Protects doctors
Medical malpractice insurance
Medical liability insurance, defensive medical costs, medical device and pharmaceutical liability costs, liability-related administrative costs
Costs related to medical liability
