Chapter 3: Casualty (Liability) Basics

Question 1

A wrongful act

Violates a duty or the rights of another and for which compensation may be sought from the responsible party

Answer 1

Tort

Question 2

Act or failure to act that is committed without the same level of care a reasonable individual would have exhibited

Answer 2

Unintentional tort

Question 3

the liability assigned to one party for the conduct of another, based solely on a relationship between the two

Answer 3

Vicarious liability

Question 4

failure to use ordinary care

Answer 4

negligence

Question 5

failure to exhibit any sort of care through recklessness or deliberate indifference to the well-being of others
ex. driving under the influence of alcohol

Answer 5

gross negligence

Question 6

artificial condition on land that attracts children

ex. swimming pool

Answer 6

attractive nuisance

Question 7

loss of companionship of a spouse

Answer 7

loss of consortium

Question 8

damages that can not be calculated

Answer 8

general damages

Question 9

damages that are specific

Answer 9

special damages

Question 10

to punish a wrongdoer from repeating negligent acts

Answer 10

punitive damages

Question 11

physical injury
sickness, disease, death

expenses include medical bills, lost wages, mental anguish, pain and suffering, etc.

Answer 11

Bodily injury liability

Question 12

physical damage to tangible property, including loss of use of that property

Answer 12

property damage liability

Question 13

third parties sustained on an insured locations or as a result of the insured’s activities

made regardless of the insured’s negligence
coverage is provided to discourage liability claims

Answer 13

medical payments coverage

Question 14

Libel, slader

Answer 14

Person Injury liability

Question 15

formal statement made by the insured

provides details for the insurer to determine its liability under a policy

Answer 15

proof of loss