Ins Exam B - Casualty Ins

Question 0

Wrongful Acts

- 2 Types

Answer 0

Criminal - Violations of law, Prosecuted by authorities, Not protected by liability insurance

Civil - can be covered by liab ins

- Tort = private or civil wrongful act 
- Brought to action by injured parties 
- Failure to use proper care - results in: 
	- injury - either BI or libel/slander 
	- damage to property

Question 1

Definition of Liability

Answer 1

Individual & Organizations maybe held legally responsible for action resulting in bodily injury or property damage of others

• loss must be accidental & negligence proven
• court action not necessary to prove negligence

Question 2

Negligence

Answer 2

Failure to do (or not do) something that ordinarily should be (or not be) done that results in a loss

• civil wrong not based on contract
• negligent party liable for damage

Question 3

Elements of Negligence

- FLAP

Answer 3

> Failure to comply w/ Legal Duty results in a wrong
Legal Duty = insured needed to act or not
Actual Loss = injury or property damage
Proximate Clause must exist
= voluntary act of wrongdoer

Question 4

ADVERTISING INJURY

Types of Injuries & damage arising from liability

Answer 4

Written or oral material that violates or infringes on copy rights, titles, or slogans

Question 5

BODILY INJURY

Types of injuries & damages arising from liab

Answer 5

Injury to the body (of a person) including pain, suffering, disease, or death

Question 6

PROPERTY DAMAGE

Types of injuries & damage arising from liability

Answer 6

Loss of tangible property; loss of use

Question 7

PERSONAL INJURY

Type of injuries & damages arising from liability

Answer 7

Mental anguish, slander (spoken), libel (written), invasion of privacy

Question 8

Absolute or Strict Liability

How liability is imposed
p57-58

Answer 8

Liability w/o regard to the party’s fault or negligence; duty owed and duty breached; established by society

Product defect; not negligence, creates absolute/strict liab

• unreasonable hazard to others - vicious animal, loaded gun
• airlines - while the plane is in the air

Question 9

Vicarious Liability

how liability is imposed

Answer 9

Insured is responsible for the wrongdoer (eg: a minor child); an employer is liable for the action of EE; a bar is liable for the actions of its intoxicated customers

Question 10

Intervening Cause

Defenses against negligence

Answer 10

Bars recovery from the original cause of loss; the intervening cause starts a new chain of events

Question 11

Last Clear Chance Rule

defenses against negligence

Answer 11

If injured party had the last clear chance to avoid the loss and did not, loss was caused by failure to act and no right to recover

Question 12

Comparative Negligence

defenses against negligence

Answer 12

Reduces amount paid for damage by % of negligent contribution

Question 13

Assumption of Risk

defenses against negligence

Answer 13

If individual aware of risk and still participated, no right to recover

Question 14

Contributory Negligence

defenses against negligence

Answer 14

If injured party contributed to the injury, no right to recover

Question 15

Punitive

damages for Tort liab

Answer 15

Court awards $$ to punish wrongdoers due to actions thought to be greater than simple negligence

Question 16

Compensatory
- 2 types

damages for Tort liab

Answer 16

> $$ paid to Injured Party

• Special = pay actual damages; monetary (eg: medical expenses)
• General = pays for non-economic losses (eg: pain & suffering)