Chapter 4 Flashcards
Casualty insurance, also called liability or _______________, provides protection in the event
the first-party insured is legally liable for bodily injury or property damage to a third party.
third-party insurance
The third
party may be owed compensation, or damages. ____________________can be awarded to the
injured third party for actual sustained losses.
Compensatory damages
Damages for specific and calculable loss amounts
are known as _______________.
special damages
Damages for noneconomic losses that are difficult to calculate are
known as _______________.
general damages
Liability insurance usually does not cover _______________ against the
insured that are ordered by the court to punish the wrongdoer.
punitive damages
A _______ is a wrongful act that violates a duty or the rights of another.
tort
Insurance covers unintentional
torts, known as _______________, which is a breach in the level of care a reasonable person would exhibit
under the same circumstances.
negligence
Someone who is accused of negligence has a number of defenses, both _______________
based on judicial decisions and statutory defenses based on legislation.
common law defenses
___________________,
a common law defense, prevents the claimant from recovering damages for negligence because the
claimant was also negligent to any extent.
Contributory negligence
North Carolina has a ______________________
that bars the claimant from recovery if they are negligent in any way, even 1% negligent.
Pure Contributory Negligence Rule
__________________, another common law defense, prevents recovery if the claimant knowingly
assumed a risk.
Assumption of risk
Liability insurers have a ______________ the insured in the event of a covered
liability claim, as stated in the Insuring Agreement.
duty to defend
__________________ refer to the liability
assigned automatically, without needing to establish negligence, to the owner of dangerous animals,
firearms, explosives, highly flammable chemicals, and other significant hazards.
Strict and absolute liability
It may also be
applied to product manufacturers and sellers, or to the owners of ___________________, which are
artificial conditions on property that draw the attention of children.
attractive nuisances
___________________ is when
liability is transferred to another party, such as parent/child and employer/employee relationships.
Vicarious liability
______________ refers
to physical injury, including sickness and death.
Bodily injury
___________________ pays for necessary
medical, surgical, hospital, and funeral expenses that result from injuries sustained on an insured
location or as a result of the insured’s actions.
Medical payments coverage
_____________________________ covers physical damage to tangible property and
costs resulting from not being able to use the property.
Property damage liability
_________________ refers to injuries that hurt
someone’s reputation or emotional well-being, like libel and slander.
Personal injury
________________ is similar
to personal injury and happens while the insured is advertising their goods and services, such as
copyright infringement.
Advertising injury
A _______________
limit is the most the policy will pay in any one occurrence.
per occurrence
A ____________ limit is the most the policy
will pay to any one person during any one occurrence
per person
An ________________ is the most the policy will
pay for all losses during the policy period.
aggregate limit
_____________ will indicate the most the policy will pay for
specific types of losses during any one loss, such as a per person limit, a per occurrence bodily injury
limit, and a per occurrence property damage limit.
Split limits
