Module 1-L - Liability and Law

Question 1

Answer

Answer 1

Policy holders answer to a complaint

Question 2

Breach of Product Warranty

Answer 2

o 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

Question 3

Civil Law

Answer 3

Observes court cases of one citizen charging another citizen for damages caused by
tort. Differs from criminal law.

Question 4

Common Law

Answer 4

Based on court decisions and customs when statutory law does not provide an answer;
creates precedent.

Question 5

Compensatory Damages

Answer 5

Money awarded in civil court for tangible and intangible damages caused by a
policyholder.

Question 6

Compensatory Damages - General

Answer 6

Money awarded for intangible emotional damages decided by a court

Question 7

Compensatory Damages - Special

Answer 7

Money awarded for exact value of tangible damages

Question 8

Complaint

Answer 8

initiates a civil lawsuit by one person (the plaintiff) requesting financial relief
from damages caused by someone else (the defendant).

Question 9

Criminal

Answer 9

Someone who has been convicted of a criminal act in a court of law.

Question 10

Default Judgement

Answer 10

Issued if policyholder fails to answer complaint

Question 11

Plaintiff

Answer 11

The person who brings a case against another person in court.

Question 12

Preponderance of Evidence

Answer 12

A preponderance of evidence is enough evidence to make it more likely that an
argument is true than that it is false. In a civil trial, the plaintiff needs to provide a
preponderance of evidence in order to win her case.

Question 13

Punitive Damages

Answer 13

Awards money for malicious, willful misconduct on the part of the tortfeasor

Question 14

Reservation of Rights

Answer 14

When the circumstances of a lawsuit or a claim may not be covered under the policy the insurer will issue a Reservation of Rights

Question 15

Statute of Limitations

Answer 15

A statute based on the common law legal system that specifies the maximum period of
time, after damages occur, that legal proceedings based on those damages may be
initiated.

Question 16

Statutory Law

Answer 16

Based on laws set forth by a governing authority; i.e. state legislature

Question 17

Tort

Answer 17

Any civil wrongdoing, whether intentional or unintentional, resulting in a court action to
remedy.

Question 18

Tort Intentional

Answer 18

A premeditated act that causes injury to a third party

Question 19

Tort Negligent

Answer 19

A negligent act that causes unintentional injury to a third party

Question 20

Tort Law

Answer 20

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

Question 21

Tortfeasor

Answer 21

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

Question 22

Waiver of Sovereign Immunity

Answer 22

Law that allows individual to sue governmental entities for damages in certain cases

Question 23

Wrongful Death Act

Answer 23

Law that defines the rights of individuals who are associated with someone who was killed because of a negligent act

Question 24

Workers Compensation Laws

Answer 24

• Restrict an employee’s right to sue an employer for injuries that occurred on the job

Question 25

Automobile no fault Laws

Answer 25

Restrict an individuals right to sue the driver of a motorized vehicle

Question 26

product warranty

Answer 26

a manufacturers guarantee ensuring the quality of its products