Module 1-L - Liability and Law Flashcards
Answer
Policy holders answer to a complaint
Breach of Product Warranty
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
Civil Law
Observes court cases of one citizen charging another citizen for damages caused by
tort. Differs from criminal law.
Common Law
Based on court decisions and customs when statutory law does not provide an answer;
creates precedent.
Compensatory Damages
Money awarded in civil court for tangible and intangible damages caused by a
policyholder.
Compensatory Damages - General
Money awarded for intangible emotional damages decided by a court
Compensatory Damages - Special
Money awarded for exact value of tangible damages
Complaint
initiates a civil lawsuit by one person (the plaintiff) requesting financial relief
from damages caused by someone else (the defendant).
Criminal
Someone who has been convicted of a criminal act in a court of law.
Default Judgement
Issued if policyholder fails to answer complaint
Plaintiff
The person who brings a case against another person in court.
Preponderance of Evidence
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.
Punitive Damages
Awards money for malicious, willful misconduct on the part of the tortfeasor
Reservation of Rights
When the circumstances of a lawsuit or a claim may not be covered under the policy the insurer will issue a Reservation of Rights
Statute of Limitations
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.
Statutory Law
Based on laws set forth by a governing authority; i.e. state legislature
Tort
Any civil wrongdoing, whether intentional or unintentional, resulting in a court action to
remedy.
Tort Intentional
A premeditated act that causes injury to a third party
Tort Negligent
A negligent act that causes unintentional injury to a third party
Tort Law
The body of law that addresses and provides remedies for any civil wrongdoing
performed on another party.
Tortfeasor
The person accused of committing a tort, otherwise known as the defendant
Waiver of Sovereign Immunity
Law that allows individual to sue governmental entities for damages in certain cases
Wrongful Death Act
Law that defines the rights of individuals who are associated with someone who was killed because of a negligent act
Workers Compensation Laws
• Restrict an employee’s right to sue an employer for injuries that occurred on the job
Automobile no fault Laws
Restrict an individuals right to sue the driver of a motorized vehicle
product warranty
a manufacturers guarantee ensuring the quality of its products
