Chapter 3 Casualty (Liability) Basics Flashcards
What term describes failure to use ordianry care.
Negligance
failure to use ordianry care is defined as negligence. failure to use any care such as driving drunk is defined as what type of negligenc?
Gross negligence
what is an attractive nuisance?
An artificial condition on land that attracts children, such as a swimming pool, and requires the owner to exhibit a special duty of care.
Compensation to a husband or wife for the loss of companionship of a spouse is known as what kind of loss?
Loss of Consortium
whats the difference between intentional and unintentional tort?
Intentional tort is a deliberate act where as thee unintentional is an act committed without reasonable care.
Awarded to the injured party for the actual loss sustained.
Compensatory Damages
awarded to an injured party for actual and known expenses such as bills, loss of earnings, and the costs of repairing or replacing damaged property.
Special Damages
paid for losses that cannot be calculated objectively and assigned a specific dollar value.
General damages - are an award to an injured party for pain, suffering, mental anguish, disfigurement, and similar types of losses.
This term gives additional award on top of compensatory damages to discourage bad behavior.
Punitive damages **most liability policies dont cover for punitive damages.
how many elements are required for an act to be considered negligent?
4 and if all four are not there then negligence can not be ruled. **do you know the elements?
if the insured is legally liable even in the absence of negligence this is what liabilty
absolute liability - such as owning a pit bull
This applies to product liability, manufacturers are liable for damages to others.
Strict Liability (defective products)
Requires the injured party to prove the alleged wrongdoer owed a duty to the injured party or to the public.
Duty is Owed-one of the 4 elements of negligence
Requires the injured party to prove the alleged wrongdoer not only owed a duty but also violated that duty. Basically, the alleged wrongdoer didn’t exhibit reasonable care.
Violation of Duty - one of the 4 elements of negligence
Requires the injured party to prove the alleged wrongdoer’s negligent actions or inactions were the proximate cause of actual injuries or damages.
Violation of Duty is Proximate Cause - one of the 4 elements of negligence
Requires the injured party to prove the actual injuries or damages were a reasonably foreseeable consequence at the time the negligent action or inaction occurred.
Foreseeable Consequence - - one of the 4 elements of negligence
P.L.P. or personal liability protection is another term for what type of liability
No fault Liability
if a policy makes payment before all other policies in place make payment for a loss, what kind of policy is it
Primary policy would pay before other policies inn place
If a policy makes payment only after all other insurance in place exhausts its limits or denies coverage, what kind of policy is it.
this would be considered an excess policy.
When two policies cover the same loss but pay based on their percentage of coverage this is what kind of policy
Pro Rata
The most the policy will pay for all losses arising out of any one OCCURENCE.
per occurence limit
The most the policy will pay for loss to any one PERSON injured in any one loss, regardless of other policy limits.
per person limit
The most the policy will pay for loss of different types that occur as a result of any one loss
split limit - on an auto policy this may look like 100/300/100.
the limit that a policy will pay during a policy period regardless of other policy limits
Aggregate Limit
