D. Liability

Question 1

Absolute Liability

Answer 1

Imposed upon a person or company engaged in hazardous or potentially dangerous business who, by negligence or by an omission, causes harm or injury to another or property. Examples of absolute liability include owning a swimming pool, harboring wild animals, or selling explosives.

Question 2

Strict Value

Answer 2

Usually products; implied product is safe; the business is then liable for defecive products.

Question 3

Vicarious Liability

Answer 3

Respondeat Superior
Transfers liability from one person to another person who would probably have a greater ability to pay. In some jurisdictions, parents may be held vicariously liable for negligent acts of the childern and employers liable for the acts of their employees.

Question 4

Limits of Liability

Answer 4

The insurer’s liability for payment as staated in an insurance policy. Limits of liability is the maximum amount of money the insurance company will pay for a particular loss.

Question 5

Per Occurrence (Accident)

Answer 5

Sub limit in a liability policy that puts a ceiling on the payment for all the claims that arise from a single accident/occurence.

Question 6

Per Person

Answer 6

The maximum amount available for payment of bodily injury to a single person in an accident, regardless of the policy limit stated in the policy for bodily injury claims

Question 7

Aggregate Limit

Answer 7

The Maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims made or number of accidents occured.

Question 8

Split

Answer 8

Seperately stated limits of liability for different coverages.

Question 9

Combined Single

Answer 9

Single Dollar Limit