Exam 2: General Liability (CGL)

Question 1

Tort

Answer 1

Violation of a person’s rights by another: civil3

Question 2

How is tort commonly classified as?

Answer 2

1) Intentional: assault, libel, slanders

2) Unintentional: negligence or carelessness

Question 3

What is the most common cause of Legal Liability?

Answer 3

Negligence

Question 4

When is L.L. established?

Answer 4

1) There was negligence
2) There was actual damage or loss
2) Negligence was the cause of loss
3) The person injured was free from fault

Question 5

What constitutes negligence?

Answer 5

1) Failure of a person to exercise the proper degree of care

2) Absolute/Strict Liability

Question 6

Absolute/Strict Liability (L.L.)

Answer 6

• L.L. established because accidents happen
• Imposed whether anyone was at fault especially ultra hazardous activities
• Can occur due to statute

Question 7

Failure of a person to exercise the proper degree of care (L.L.)

Answer 7

• Burden of proof is on the inured party

- Never black and white, unpredictable

Question 8

Compensatory Damages

Answer 8

Compensatory Damages to compensate injured party for the harm caused to them

Question 9

Punitive Damages

Answer 9

Punish defendants whose conduct is questionable or gross negligence

Question 10

Property Loss (PD)

Answer 10

Relatively Simple

Question 11

Bodily Injury (BI)

Answer 11

• Special Damages
  1) Compensate for measurable losses
  2) Medical Expenses
  3) Loss of Income

Question 12

General Damages

Answer 12

Pain and Suffering

Question 13

Vicarious Liability

Answer 13

• One person becomes legally liable for the negligent behavior of another
• ERs are held responsible for actions of their employees
• Parent Child relationship

Question 14

Joint and Several Liability

Answer 14

• Negligence of two or more parties contributes to the injury or damage
• Injured party may recover the entire amount of compensation from any negligent party who is able to pay
  regardless of the degree of that party’s negligence
• Search of Deep Pockets

Question 15

Premise Liability

Answer 15

• Owner or tenant may be held liable for damages if someone is injured
• If the property of others is damaged as a result of a condition in or arising out of premises

Question 16

Operations Liability

Answer 16

• Operations conducted away from premises
• Uncompleted Work
• AKA operations in progress

Question 17

Product Liability

Answer 17

• Manufacturers of a faulty product that injures someone or damages property may be hod legally liable

Question 18

Product Liability Negligence

Answer 18

• Products is negligently made or improperly designed

- Proper warning is not given to the consumer

Question 19

Product Liability Losses

Answer 19

• Cost of defending and paying claims for injury
• Cost of recalling batches and products suspected of being defective
• Residual uncertainty: Reputation