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ENTERPRISE RISK MANAGEMENT > LESSON 5 > Flashcards

LESSON 5 Flashcards

1
Q

It is a violation of a person’s legal rights or a failure to perform a legal duty owed to a person, business, or society.

A

Legal Wrong

These are the three broad classes of legal wrongs:
- Crime
- Breach of Contract
- Tort

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2
Q

It is a legal wrong against society that is punishable by fines, imprisonment, or death.

A

Crime

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3
Q

Failure to fulfill contractual obligations.

A

Breach of Contract

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4
Q

It is a legal wrong where the law allows a remedy in the form of money damages.
- The plaintiff (claimant) is the injured party.
- The tortfeasor (defendant) is the alleged wrongdoer.
- Insurance companies may be involved as plaintiffs or defendants.

A

Tort

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5
Q

Categories of Torts

A
  1. Intentional Torts
  2. Strict Liability (Absolute Liability)
  3. Negligence
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6
Q

_____________ results in harm or injury to another person or damage to the person’s property.

A

Intentional Torts

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7
Q

_____________ liability is imposed regardless of negligence or fault.

A

Strict Liability (Absolute Liability)

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8
Q

________________ failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm.

A

Negligence

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9
Q

To collect damages, the injured person must show that the tort feasor is guilty of ____________.

A

Negligence

These are the four essential elements of negligence:
▪ Existence of a legal duty
▪ Failure to perform that duty
▪ Damage or injury to the claimant
▪ Proximate cause relationship between the negligent act and the infliction of damage

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10
Q

Types of Defenses Against Negligence

A
  1. Contributory Negligence
  2. Comparative Negligence
  3. Last Clear Chance Rule
  4. Assumption of Risk
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11
Q

If the injured party’s negligence contributed to the injury, they cannot collect damages.

A

Contributory Negligence

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12
Q

If both parties share fault, the financial burden is divided according to their degree of fault.

A

Comparative Negligence

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13
Q

A plaintiff who was negligent can still recover damages if the defendant had a last clear chance to avoid the accident but failed to do so.

A

Last Clear Chance Rule

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14
Q

If a person knowingly engages in a dangerous activity, they cannot recover damages for injuries sustained.

A

Assumption of Risk

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15
Q

____________ under certain conditions, the negligence of one person can be attributed to another.

A

Imputed Negligence

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16
Q

___________ “the thing speaks for itself.”

A

Res Ipsa Loquitur

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17
Q

___________ have a legal obligation to protect others from harm.

A

Property Owners

Three groups traditionally have been recognized:
1. Trespasser
2. Licensee
3. Invitee

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18
Q

______________ a person who enters or remains on the owner’s property without the owner’s consent.

A

Trespasser

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19
Q

______________ a person who enters or remains on the premises with the occupant’s expressed or implied permission.

20
Q

______________ a person who is invited onto the premises for the benefit of the occupant.

21
Q

Current Tort Liability Problems

A
  • Defective Tort Liability System
  • Medical Sector Claims
  • Liability from Technological & Societal Changes
22
Q

____________ critics argue the system is inefficient and costly.

A

Defective Tort Liability System

23
Q

_____________ remains a liability issue. It occurs when a negligent act or omission by a healthcare professional causes harm.

A

Medical Malpractice

24
Q

_____________ have led to additional tort claims and concerns.

A

Liability from Technological & Societal Changes

25
______________ **while technology improves lives, it also creates new liability risks**.
Technology-Related Liability
26
It is a **four-wheeled motor vehicle** owned by the insured or leased by the insured for 6 or more continuous months.
Eligible Vehicle
27
It is an extremely **important provision**.
Your Covered Auto **Four classes of vehicles are considered covered autos**: - Any vehicle shown in the declarations - A newly acquired auto - A trailer owned by the named insured - A temporary substitute vehicle
28
Types of Coverage in the Personal Auto Policy (PAP)
- Liability Coverage - Medical Payments Coverage - Uninsured Motorists Coverage - Coverage for Damage to Your Auto
29
The most important part, **protecting against lawsuits/claims from negligent auto use**.
Liability Coverage
30
**Covers medical expenses regardless of fault**.
Medical Payments Coverage
31
**Pays for bodily injury** (and sometimes property damage) caused by: - Uninsured motorists - Hit-and-run drivers - Negligent drivers with insolvent insurance companies
Uninsured Motorists Coverage
32
**Covers damage or theft**.
Coverage for Damage to Your Auto
33
You should know what to do if you have an accident or loss.
Duties After an Accident or Loss
34
Approaches for Compensating Auto Accident Vehicles
- Financial Responsibility Laws - Compulsory insurance Laws - Unsatisfied Judgment Funds - Uninsured Motorists Coverage - Low-cost Auto Insurance - “No pay, no play” Laws - No-fault Auto Insurance
35
It **does not require proof of financial responsibility** until after the driver has his/her first accident or conviction for certain offenses, such as driving under the influence of alcohol.
Financial Responsibility Laws
36
It **requires motorists to carry at least a minimum amount of liability insurance** before the vehicle can be licensed or registered.
Compulsory Insurance Laws
37
It is a **"state fund" for compensating auto accident victims** who have exhausted all other means of recovery.
Unsatisfied Judgment Funds
38
It is another approach for compensating injured auto accident victims.
Uninsured Motorists Coverage
39
It provides **minimum amounts of liability insurance at reduced rates to motorists** who cannot afford regular insurance or have limited financial assets to protect.
Low-cost Auto Insurance
40
It restrict uninsured motorists from suing negligent drivers for noneconomic damages, such as compensation for pain and suffering.
“No pay, no play” Laws
41
It means that after an auto accident involving bodily injury, each party collects from his or her own insurer regardless of fault.
No-fault Auto Insurance
42
Other Property and Liability Insurance Coverage
- ISO Dwelling Program - Mobile Home Insurance - Inland Marine Floaters - Personal Umbrella Policy
43
______________ are narrower in coverage than the current homeowners forms.
ISO Dwelling Program
44
It generally cost less than conventional housing.
Mobile Home Insurance
45
It provides broad coverage on property frequently moved from one location to another and on property used in transportation and communications
Inland Marine Floaters
46
It provides protection against a catastrophic lawsuit or judgment
Personal Umbrella Policy

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