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Insurance License > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

What is Liability insurance known as?

A

Third Party Insurance

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2
Q

What is the 3rd party in liability insurance?

A

The Claimant

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3
Q

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

A

Tort

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4
Q

What is an unintentional tort?

A

A failure to act that is committed without the same level of care a reasonable person would have given.

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5
Q

Does liability insurance cover intentional torts?

A

no

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6
Q

Failure to use ordinary care is __________-

A

negligence

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7
Q

Failure to exhibit any sort of care through recklessness or deliberate indifference to the well being of others.

A

Gross Negligence

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8
Q

An artificial condition on land that attracts children and requires the owner to exhibit a special level of care.

A

Attractive Nuisance

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9
Q

Compensation to a husband or wife for the loss of companionship of a spouse

A

loss of consortium

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10
Q

Legal liability is _________

A

the responsibility, under law or contract, for an act or failure to act.

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11
Q

_____ liability is assigned to one party for the actions of another

A

Vicarious

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12
Q

Compensatory damages are awared to the injured party for the actual loss sustained. Their are two types of damage, _____ and __________.

A

Special, General

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13
Q

_____ Damages are an award to an injured party for actual and known expenses such as bills, loss of earnings or cost of repairing or replacing damaged property. These are tangible losses.

A

Special

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14
Q

______ damages are an award to an injured party for pain, suffering, metal anguish, disfigurement and similar types of losses. These can not be objectively calculated.

A

General

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15
Q

______ damages are an award to an injured party to punish and discourage a wrongdoer from repeating negligent acts or omissions.

A

Punitive

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16
Q

Legal liability arising from physical injury, including sickness, disease and death caused by the acts or omissions of an insured.

A

Bodily injury

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17
Q

Examples of bodily injury?

A

Lost wages, medical bills, mental anguish, pain and suffering, etc.

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18
Q

Coverage for the bodily injury of third parties sustained on an insured location or as a result of the insureds activities.

A

Medical Payments Coverage

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19
Q

Examples of _________ include libel, slander, false arrest, invasion of privacy and copyright infringement. This is understood to affect one’s reputation

A

Personal Injury Liability

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20
Q

Sudden, unforeseen, unintended, unplanned event from which loss or damage occurs

A

Accident

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21
Q

An accident including continuous or repeated exposure.

A

Occurrence

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22
Q

A formal statement made by the insured and provided to the insurer that provides necessary details for the insurer to determine its liability under a policy

A

Proof of Loss

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23
Q

A document that shows evidence that specific types of insurance were purchased by the insured.

A

Certificate of Insurance

24
Q

_________ is the initial notification to the insurer that a loss has happened.

A

Notice of loss

25
Q

In order for an act or failure to act to be negligent it must contain _____________.

A

4 elements

26
Q

The 4 elements of negligence include Duty is owed, violation of duty, violation of duty is proximate cause and ___________.

A

Foreseeable consequence

27
Q

Duty is owed means

A

they do owe compensation

28
Q

Violation of duty owed

A

Shows they violated their duty

29
Q

Violation of duty is proximate cause of loss

A

The main cause is their actions

30
Q

Injury or damage was foreseeable

A

this was a preventable act

31
Q

Name two common defenses in negligence

A

Common Law, Statutory law.

32
Q

contributory negligence prevents damages caused by a negligent party if _______—

A

the CLAIMANT was negligent to any extent.

33
Q

Assumption of risk ____________-

A

prevents recovery if the claimant knowingly assumed the risk

34
Q

Comparative negligence __________________________

A

reduces the proportion of the claimants negligent.

35
Q

The length of time during which legal proceedings may be initiated

A

Statute of Limitations

36
Q

_____________ is a legal principle that imposes legal liability based on conditions, activities or products that exhibit very high hazards.

A

Strict and Absolute liability

37
Q

Absolute liability is most often associated with ___________.

A

Dangerous animal ownership, also storage of explosives, highly flammable material or firearms

38
Q

If a claimant can prove that a product caused the injury, the manufacturer will be held liable whether or not the product was defective. This falls under______

A

Strict and Absolute Liability

39
Q

No fault- Liability system the injured party collects benefits from ___________.

A

His/her own insurance company.

40
Q

Some states refer to their no-fault laws and coverage as __________

A

PIP or personal injury protection.

41
Q

Injured person is unable to use the negligent party under

A

Pure No-Fault

42
Q

In a _________ an injured person is only able to sue after a certain amount of damages has been reached.

A

Modified No-Fault

43
Q

The person or organization designated on the declarations page of the policy is the ______

A

name insured

44
Q

A person or organization protected by an insurance contract is the _____-

A

insured

45
Q

The name of the person or organization that appears first on the Declarations page of a policy as “name insured”

A

First Name insured

46
Q

Additional insured is a _____________________-

A

person or organization not ordinarily protected by a policy but which, through the addition of an endorsement, is granted status as an insured.

47
Q

_________ is a provision that specifies the process to be followed when more than one policy covers the same loss.

A

Other insurance

48
Q

If the policy is _______ it makes payment before all other policies in place make payment for a loss.

A

Primary

49
Q

If the policy is _______, it makes payment only after all other insurance in place exhausts its limits or denies coverage.

A

excess

50
Q

When more than one policy covers the same loss it is ___________

A

Pro Rata Liability

51
Q

Per Occurrence limit is ________–

A

The most the policy will pay for all losses arising out of any one occurrence, regardless of other policy limits.

52
Q

Per Person Limit is __________.

A

The most the policy will pay for loss to any one person injured in any one loss, regardless of other policy limits.

53
Q

Aggregate Limits are ______-.

A

The most a policy will pay for all losses submitted during a policy period.

54
Q

A _____ Limit of liability applies to bodily injury, property damages or both.

A

Combined single

55
Q

Assignment makes it so that the owner of a liability policy can not _________

A

transfer policy ownership without the insurer’s written consent.

56
Q

After an insurer pays a loss, it is granted the insured’s right to seek recovery from the party responsible for the loss. This is ________.

A

Subrogation.

57
Q

When coverage under a particular form of insurance issued by an insurer is broadened without an additional premium charge, it automatically applies to all policies currently in effect. This is _________.

A

Liberalization

Insurance License (4 decks)

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