Domain 9: Laws and Ethics

Question 1

Prospective Experience Rating

Answer 1

Past experience modifies future rates.

Question 2

Retrospective Experience Rating

Answer 2

Modifies the manual rate to reflect experience during the policy period.

Question 3

Fellow Servant Rule

Answer 3

The employer will not be responsible for injuries caused by another worker.

Used prior to the enactment of workers’ compensation laws.

Question 4

Assumption of Risk

Answer 4

The worker knew he/she was involved in a risky or hazardous occupation.

Used prior to the enactment of workers’ compensation laws.

Question 5

Contributory Negligence

Answer 5

The worker contributed to his/her injury.

Used prior to the enactment of workers’ compensation laws.

Question 6

Hold Harmless Agreement

Answer 6

Used between two parties to establish that the indemnitee is protected from any unforeseen liabilities, losses, claims, or damages during the indemnitee’s involvement in an activity.

A hold harmless agreement is developed to prevent lawsuits by assigning liability in a contract. Hold harmless means that if there is a problem and a suit later, one party shields or “holds harmless” the other.

Question 7

Strict Liability

Answer 7

The concept whereby the plaintiff need not show negligence or fault to prove liability.

Question 8

Negligence

Answer 8

Failure to exercise a reasonable amount of care or to carry out a legal duty, so that injury or property damage occurs to another.

An example would be a landlord who did not provide adequate security, and the renter was robbed.

Question 9

Exclusive Remedy

Answer 9

State workers’ compensation statutes gave employees a definite remedy for injuries and diseases arising out of or suffered in the course of their employment.

Question 10

Attractive Nuisance doctrine

Answer 10

This applies to the law of torts, in the US. It states that a landowner may be held liable to injuries to children trespassing on the land that is likely to attract children. A backyard swimming pool is an example.

Question 11

Tort

Answer 11

A wrongful act or a failure to exercise due care that results in damage or injury in the broadest sense.

Question 12

Obvious Peril

Answer 12

A manufacturer or distributor would not have to label a large-bladed hunting knife because the product involves an “Obvious Peril”.