Liability Insurance concepts

Question 1

Establishing Negligence:

evidence that the defendant had a legal duty to act or not to act

Answer 1

legal duty

Question 2

evidence that the defendant breached the legal duty

Answer 2

standard of care/breach of duty

Question 3

evidence that negligence has been the proximate cause of the loss

Answer 3

proximate cause

Question 4

evidence of actual injury or damage for a person to seek recovery

Answer 4

actual loss

Question 5

Types of liability:

liability arising from extremely hazardous activities

Answer 5

absonlute

Question 6

liability applied to product manufacturing

Answer 6

strict

Question 7

transfer of the liability from one person to another

Answer 7

vicarious

Question 8

limits of liability:

limit on the payment for claims from a single accident

Answer 8

per occurence

Question 9

limit on the payment for claims for a single person

Answer 9

per person

Question 10

limit on the payment for claims during a policy period

Answer 10

aggregate

Question 11

limit of liability stated separately for different coverage

Answer 11

split

Question 12

single limit of liability applying to the total damages

Answer 12

combined single

Question 13

types of liability damages

Answer 13

1. compensatory
2, punitive
3. bodily injury (BI)
4. Property damage (pd)
5. Personal Injury (PI)
6. Advertising Injury

Question 14

property contracts are two-party contracts between

Answer 14

the insured and the insurer

Question 15

casualty contracts are what kind of contracts? and who do they involvde

Answer 15

they are third party contracts

and they involve the insured, the insurer, and an unknown third party

Question 16

in property insurance, insurable interest must exist between who?

Answer 16

the policy owner and the insured at the time of the loss

Question 17

an insured is anyone covered under the policy, whether named or not…true or false?

Answer 17

true