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M1: Insurance terms and related concepts > Liability and Law > Flashcards

Liability and Law Flashcards

1
Q

Three types of laws used in civil court:

A
  • Statutory
  • Common
  • Tort
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2
Q

Statutory law definition

A

Based on written laws (federal, city and state legislature) and governs the authority of common law.

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3
Q

Common law definition

A

Based on court decisions and custom when statutory law does not provide an answer.

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4
Q

Tort law definition

A

The body of law that addresses and provides remedies for any civil wrongdoing performed on another party.

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5
Q

Duties of insurer and insured when 3rd party files lawsuit against insured:

A

Insured:

  • Alert insurer.
  • Forward all information regarding the matter to the insurer.
  • Cooperate with insurer and adjuster in all matters related to the court case.

Insurer’s obligations:

  • Defend the policyholder.
  • Pay any legal expenses that are incurred at its own request.
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6
Q

Statutory and Common law are used in what types of court?

A

Criminal and civil

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7
Q

Tort definition

A

Any civil wrongdoing, whether intentional or unintentional.

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8
Q

Criminal case

A
  • State charges individual.

- 100% of jury must agree the charge has been proven.

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9
Q

Civil case

A
  • One individual charges another.

- 51% of the evidence must favor the plaintiff’s casse.

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10
Q

Civil case

A
  • One individual charges another.

- 51% of the evidence must favor the plaintiff’s case.

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11
Q

Applicable jurisiction

A

Case is held where the involved parties live and do business- tort law relies on geographic location to determine which jurisdiction is applicable.

  • Jurisdiction: The authority of a court or judge to hear a case and to make a judgement.
  • Judicial District: The designation of a geographic area over which a particular court has jurisdiction.
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12
Q

Plaintiff

A

The person suffered injury or damage; also known as the claimant.

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13
Q

Tortfeasor

A

The person accused of committing a tort, otherwise known as the defendant.

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14
Q

Joint Tortfeasor

A

A group of two or more persons accused of committing a tort.

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15
Q

Intentional Tort

A

A premeditated act that causes injury to a third party.

-Ex.: OJ Simpson was sued in a civil court for the intentional torts of battery wrongful deaths of Nicole Brown and Ronald Goldman.

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16
Q

Negligent Tort

A

A negligent act that causes unintentional injury to a third party.

-Ex.: Beth was severely injured by a faulty tool that she borrowed from Lisa. She could sue Lisa in a civil court for a negligent tort.

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17
Q

Statutory law

A

Based on written, legislated laws

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18
Q

Common law

A

Based on court cases and customs

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19
Q

Tort law

A

Body of law that applies to civil court cases and addresses and civil wrongdoing

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20
Q

Intentional Tort

A

Planned wrongful act

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21
Q

Negligent Tort

A

Unintentional wrongful act

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22
Q

Tortfeasor

A

The defendant in the court case.

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23
Q

Complaint

A

When a claimant files a lawsuit against a policyholder for damages the policyholder caused.

24
Q

Answer

A

The tortfeasor, or defendant’s response to the complaint can be one of the following:

  1. ) I accept the complaint and will pay for damages.
  2. ) I deny the complaint.
  3. ) I accept the complaint with a right to insert evidence into the case.
25
Default Judgment
If the defendant fails to answer the plaintiff's complaint, and does not appear in court, the result will be a default judgement in favor or the plaintiff.
26
Reservation of Rights
-When the circumstances of lawsuit or a claim may not be covered under the policy, the insurer will issue a Reservation of Rights. - Gives the insurer time to investigate its obligations. - Allows the insurer to stop defending the policyholder or deny a claim if it finds that the case is not covered. - Gives the policyholder fair warning if she has to prepare her own defense. - Necessary Elements of a Reservation of Rights (letter must): 1. ) Include the insurer's name, the policy number, and the event or loss. 2. ) Clearly and concisely explain the situation, especially that the policyholder may not receive compensation or may have to defend himself in court. 3. ) Inform the policyholder about potential consequences (Ex.: he might have to reimburse the insurer for expenses it has already paid.)
27
Non-waiver agreement
- Also used when the insurer thinks coverage may not apply to a claim. - Allows insurer to keep its right to deny coverage. - Must be signed by the policyholder (but the insurer may NOT force a policyholder to sign).
28
Complaint
Filed by a claimant against a policyholder.
29
Answer
Policyholder's response to complaint.
30
Default Judgement
Issued if policyholder fails to answer complaint.
31
Duties of the insured
Alert insurer if taken to court; send insurer all information pertaining to the case.
32
Obligations of the insurer
Defend the insured in a court case.
33
Reservation of Rights or a Non-Waiver Agreement
Issued when the case may not fall under the terms of the insurance policy.
34
What are damages?
Monetary compensation for financial loss or injury awarded to a plaintiff by civil court. - Categories of harm: - Physical - Financial - Physical and financial - Emotional or reputational - Two main types of damages: - Compensatory - Punitive
35
Compensatory Damages
Money awarded for tangible and intangible economic loss. - Two types: - Special: Compensatory damages awarded for tangible losses with a quantifiable value. - Proven by providing medical bills, repair bills, etc. - Ex.: Medical bill for gunshot wound: $5,000; Repair bill for a vandalized home: $3,000. - General: Compensatory damages are determined by the court and awarded for intangible, emotional losses that are not quantifiable. - Losses with subjective value include: - Expected future losses - mental anguish - permanent injury - loss of reputation - pain and suffering - Future losses due to unemployment.
36
Diminution of Value
Total amount of all damages resulting from an occurrence. -Legal term used in calculating compensatory damages.
37
Punitive Damages
- Money awarded to punish egregious misconduct - For intentional acts, such as slander, fraud, violence, oppression, or recklessness. - Not typically covered in liability insurance.
38
Compensatory damages
Awards money for tangible and intangible damages.
39
Special damages
Money awarded for exact value of tangible damages.
40
General damages
money awarded for intangible, emotional damages decided by court.
41
Punitive damages
Awards money for malicious, willful, misconduct on the part of the tortfeasor.
42
The Statute of Limitations
A law limiting the amount of time an injured party has to file a complaint after an occurrence.
43
The Wrongful Death Act
Law that defines the rights of individuals who are associated with someone who has killed because of a negligent act. Plaintiffs may sure for damages such as: - loss of companionship - loss of income - pain and suffering
44
Workers' Compensation
Restrict an employee's right to sue his or her employer for injuries that occurred on the job.
45
Automobile No-Fault Laws
Restrict an individual's right to sue the driver of a motorized vehicle.
46
Breach of Product Warranty
If a product is not suitable for its intended purpose and causes injury or damage, the manufacturer is considered strictly liable and may be sued by the consumer.
47
Waiver of Sovereign Immunity
Law that allows individuals to sue governmental entities for damages in certain cases.
48
Discovery Rule
Statutes of limitations run from when an injury is, or should have been, discovered.
49
Sovereign immunity
Law that restricts people from suing governmental entities.
50
Product warranty
A manufacturer's guarantee ensuring the quality of its products.
51
Statute of limitations
plaintiff has a limited time to file a complaint after an occurrence.
52
Wrongful death act
protects parties associated with a death caused by negligence
53
Waiver of Sovereign immunity
individuals may sue government entities in certain cases.
54
Workers' Compensation laws
keep employees from suing their employers for injuries.
55
Auto no-fault laws:
Keep people from suing drivers for damages.
56
Breach of Product Warranty
Manufacturers are strictly liable for producing faulty or dangerous products.

M1: Insurance terms and related concepts (12 decks)

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