Chapter 4 - Casualty/Liability Insurance Basics Flashcards
Damages awarded to an injured party for actual expenses (i.e., medical bills)
Special Damages
Damages awarded to an injured party that cannot be calculated objectively (i.e., Pain and suffering)
General Damages
Legal liability arising from physical injury, including sickness, disease, and death.
Bodily Injury
Failure to use ordinary care
Negligence
Coverage for bodily injury to a third party regardless of negligence.
Medical Payments
Legal liability arising from physical damage to tangible property.
Property Damage
4 Elements of Negligence
Legal Duty of Care
Breach of Duty
Proximate Cause
Loss or Damage
Maximum amount the policy will pay for all losses submitted during the policy period, regardless of other policy limits
Aggregate Limit
A Statutory Law defense that reduces the damages in proportion to the degree of negligence.
Comparative Negligence
A Common Law defense that prevents recovery for damages caused by a negligent party if the claimant was negligent in any extent.
Contributory Negligence
A system or law in which the injured party collects insurance benefits from his/her own policy.
No Fault Liability
25/50/15 is an example of what type of limit?
Split Limit
A type of limit in which is the most the policy will pay for all losses in any one occurrence.
Combined Single Limit
Legal principle that imposes legal liability for products from a business.
Strict Liability
Legal principle that imposes legal liability for animal ownership.
Absolute Liability
The failure to exhibit any sort of care through recklessness or deliberate indifference to the well- being of others
Gross Negligence
A wrongful civil act- not including a criminal act or breach of contract- that violates a duty or the rights of another, and for which the harmed party may seek compensation
Tort
Not caused by a deliberate act, but are the result of the failure to act as a reasonable or prudent person would under the same circumstances
Unintentional torts
Deliberate acts that are premeditated or planned and that harm another.
Liability policies do not provide coverage for this
Intentional torts
Defenses that are based on judicial or court decisions
Common Law Defenses
Prevents recovery if the claimant knowingly assumed a risk, thus weakening or eliminating the defendant’s duty of care.
Assumption of Risk
Prevents or limits recovery from the wrongdoer when a distinctly
separate negligent act occurs after the original negligent act, but before damage occurs. This interferes with the chain of events that brings about the loss, meaning the original act may not be the proximate cause of injury.
Intervening Cause
Defenses that are based on legislation
Statutory Defenses
The length of time during which legal proceedings may be initiated, set either by state or federal law, usually beginning the day an event occurs
Statute of limitation
Money paid by order of a court as compensation to an injured claimant
Damages
In some cases, the law will allow damages to be awarded in addition to compensatory damages in order to punish and discourage a wrongdoer from repeating negligent acts or omissions.
Punitive Damages
An artificial condition on land that attracts children, such as a swimming pool. Even if they are trespassing onto someone’s property, children are legally considered invitees if the premises contains an attractive nuisance, and the property owner may be held absolutely liable for any resulting injuries.
Attractive Nuisance
While most liability cannot be transferred to another party, some relationships permit a person
to have _______ _______ for the actions of another (parent/child)
Vicarious Liability
Refers to certain types of harm that affect a person’s reputation or emotional well-being, such as libel, slander, false arrest, and invasion of privacy
Personal Injury Liability
_______ _______ refers to similar injuries while the insured is advertising their goods and services, such as misappropriation of advertising ideas, copyright infringement, and defamation.
Advertising Injury
