General Liability

Question 1

Tort - Definition

Answer 1

A tort is a civil wrong (as opposed to criminal), other than breach of contract, committed by one party against another party.

Question 2

Negligence - Definition

Answer 2

Negligence is often defined as failure to exercise that amount of care an ordinary, reasonable, prudent person is required to use to protect others from unreasonable risk of harm or injury.

Question 3

What are the Two Measures of Negligence?

Answer 3

1. Prudent Person Concept, and 2. Elements of Negligence.

Question 4

What are the Four Elements of Negligence?

Answer 4

1. Legal Duty/Standard of Care
2. Breach of Duty
3. Proximate Cause
4. Actual Loss or Damages

Question 5

Proximate Cause - Definition

Answer 5

Proximate cause is an unbroken chain of events leading to the damages.

Question 6

Assumption of Risk - Definition

Answer 6

Is when one knowingly and voluntarily exposes himself/herself to a know danger.

Question 7

Contributory Negligence - Definition

Answer 7

Is when a person or organization adds in any way to his/her own injury and is barred from recovery.

Question 8

Define:

Waiver of Subrogation

Answer 8

An agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss. The intent of the waiver is to prevent one party’s insurer from pursuing subrogation against the other party.

Question 9

Define:

Subrogation

Answer 9

Is the right for an insurer to pursue a third party that caused an insurance loss to the insured.

Question 10

Define:

Additional Insured

Answer 10

A person or organization not automatically included as an insured under an insurance policy who is included or added as an insured under the policy at the request of the named insured.