Chapter 3 Casualty (Liability) Basics

Question 1

What term describes failure to use ordianry care.

Answer 1

Negligance

Question 2

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?

Answer 2

Gross negligence

Question 3

what is an attractive nuisance?

Answer 3

An artificial condition on land that attracts children, such as a swimming pool, and requires the owner to exhibit a special duty of care.

Question 4

Compensation to a husband or wife for the loss of companionship of a spouse is known as what kind of loss?

Answer 4

Loss of Consortium

Question 5

whats the difference between intentional and unintentional tort?

Answer 5

Intentional tort is a deliberate act where as thee unintentional is an act committed without reasonable care.

Question 6

Awarded to the injured party for the actual loss sustained.

Answer 6

Compensatory Damages

Question 7

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.

Answer 7

Special Damages

Question 8

paid for losses that cannot be calculated objectively and assigned a specific dollar value.

Answer 8

General damages - are an award to an injured party for pain, suffering, mental anguish, disfigurement, and similar types of losses.

Question 9

This term gives additional award on top of compensatory damages to discourage bad behavior.

Answer 9

Punitive damages **most liability policies dont cover for punitive damages.

Question 10

how many elements are required for an act to be considered negligent?

Answer 10

4 and if all four are not there then negligence can not be ruled. **do you know the elements?

Question 11

if the insured is legally liable even in the absence of negligence this is what liabilty

Answer 11

absolute liability - such as owning a pit bull

Question 12

This applies to product liability, manufacturers are liable for damages to others.

Answer 12

Strict Liability (defective products)

Question 13

Requires the injured party to prove the alleged wrongdoer owed a duty to the injured party or to the public.

Answer 13

Duty is Owed-one of the 4 elements of negligence

Question 14

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.

Answer 14

Violation of Duty - one of the 4 elements of negligence

Question 15

Requires the injured party to prove the alleged wrongdoer’s negligent actions or inactions were the proximate cause of actual injuries or damages.

Answer 15

Violation of Duty is Proximate Cause - one of the 4 elements of negligence

Question 16

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.

Answer 16

Foreseeable Consequence - - one of the 4 elements of negligence

Question 17

P.L.P. or personal liability protection is another term for what type of liability

Answer 17

No fault Liability

Question 18

if a policy makes payment before all other policies in place make payment for a loss, what kind of policy is it

Answer 18

Primary policy would pay before other policies inn place

Question 19

If a policy makes payment only after all other insurance in place exhausts its limits or denies coverage, what kind of policy is it.

Answer 19

this would be considered an excess policy.

Question 20

When two policies cover the same loss but pay based on their percentage of coverage this is what kind of policy

Answer 20

Pro Rata

Question 21

The most the policy will pay for all losses arising out of any one OCCURENCE.

Answer 21

per occurence limit

Question 22

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

Answer 22

per person limit

Question 23

The most the policy will pay for loss of different types that occur as a result of any one loss

Answer 23

split limit - on an auto policy this may look like 100/300/100.

Question 24

the limit that a policy will pay during a policy period regardless of other policy limits

Answer 24

Aggregate Limit