Insurance Liability Terminology

Question 1

The liability assigned to one party for the conduct of another

Answer 1

Vicarious Liability

Question 2

Failure to use ordinary care

Answer 2

Negligence

Question 3

Failure to exhibit any sort of care through recklessness

Answer 3

Gross negligence

Question 4

An artificial condition on land that attracts children

such as a swimming pool

Answer 4

Attractive nuisance

Question 5

Compensation to a spouse for the loss of companionship

Answer 5

Loss of consortium

Question 6

The responsibility, under law or contract, for an act or failure to act

Answer 6

Legal liability

Question 7

A wrongful act, other than a breach of contract

Answer 7

Tort

Question 8

Type of compensatory damage

Awarded to the injured party for the actual tangible loss sustained

Answer 8

Special damages

Question 9

An award to an inured party to discourage a wrongdoer from repeating negligent acts

Answer 9

Punitive damages

Question 10

Legal liability arising from physical damage to a tangible property

Answer 10

Property damage liability

Question 11

Coverage for injuries of 3rd parties sustained on an insured location

Answer 11

Medical payments coverage

Question 12

Type of compensatory damage

Paid for damages that cannot be objectively calculated, such as pain

Answer 12

General damages

Question 13

Legal liability arising from wrongful conduct of insured resulting in injuries to one’s mental/emotional state

Answer 13

Personal injury liability

Question 14

Pays for medical expenses incurred by 3rd party on the insured’s premises

Answer 14

Medical payments coverage

Question 15

Legal liability arising from physical injury caused by acts of insured

Answer 15

Bodily injury liability

Question 16

Legal liability arising from physical damage to tangible property

Answer 16

Property damage liability