Liability Insurance and policy Limits

Question 1

Liable

Answer 1

responsible for a loss

Question 2

Liability insurance

Answer 2

protects policyholder against any damages or injuries caused by them to another party

Question 3

negligence

Answer 3

Failure to use a reasonable degree of care. wrongful acts or failure to do something

Question 4

Vicarious liability

Answer 4

the transfer of negligence from one party to another

Question 5

Proof of negligence

Answer 5

wrongful act
a loss
loss must be from the wrongful act

Question 6

what are the degrees of liability?

Answer 6

partial liable, full liability, and no liability

Question 7

full liability

Answer 7

insured is 100% liable for third party damages

Question 8

partial liability

Answer 8

insured party is partially liable but so is the third party for third party damages

Question 9

no liability

Answer 9

insured was not liable at all for third party damages

Question 10

Defenses to a claim of negligence

Answer 10

assumption of risk, contributory negligence , and comparative negligence

Question 11

Assumption of risk

Answer 11

claimant knew he could possibly experience damage or injury

Question 12

comparative negligence

Answer 12

if plaintiff was responsible for some of his loss the insurer will adjust his indemnification

Question 13

contributory negligence

Answer 13

if plaintiff was at all responsible for his damages he will receive no indemnification

Question 14

modified comparative negligence

Answer 14

plaintiff will not receive any indemnification if they are determined 50/51% more at fault

Question 15

Res Ipsa Loquitar

Answer 15

when the defendant is without a doubt at fault there’s no need for proof of negligence

Question 16

strict (absolute) liability

Answer 16

means party is 100% reliable because acts performed are dangerous

Question 17

Dangerous instrumentality doctrine

Answer 17

holds party liable for damages caused by the act of using dangerous objects

Question 18

Policy limit

Answer 18

max amount a policy will pay for covered losses

Question 19

what are the tree types of liability policy limits?

Answer 19

single, split, and aggregate

Question 20

Single limit liability insurance

Answer 20

has one max payout for liability damages caused by policyholder per occurrence

Question 21

Split limit liability insurance

Answer 21

max bodily injury limit for one person/ max limit for all people/ max payout for property damage

Question 22

aggregate limit liability insurance

Answer 22

max payout for bodily or property damage per occurrence/ max amount policy will pay per term