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A&P(1) > Risk Quiz 2 > Flashcards

Risk Quiz 2 Flashcards

1
Q

Assumption of Risk

A

One recognizes the danger involved in an activity
Ex) Going skydiving

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2
Q

Comparative/Contributory Negligence

A

The plaintiff was partially to blame for what happened

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3
Q

Res Ipsa Loquitur

A

“The thing speaks for itself”
- It is what it is
- Reverses the burden of proof from the plantiff to the defendant

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4
Q

Vicarious Liability

A

One person becomes legally liable for the negligent behavior of another
Ex) Employers are held liable for the actions of their employees acting as employees

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5
Q

Joint and Several Liability

A

Negligence of two or more parties contributes to the injury or damage

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6
Q

Product Liability

A

Manufacturers of a faulty product that injures someone or damages property may be held legally liable

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7
Q

Negligence

A
  • Property is negligently made or improperly designed
  • Proper warning is not given
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8
Q

Product Liability Losses

A

Cost of defending and paying claims for injury caused by a product

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9
Q

Premises Liability

A

The owner or tenant may be held liable for damages if someone is injured

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10
Q

Trespasser

A

Someone comes on property without right and consent - only obligation of owner is to abstain from doing intentional harm

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11
Q

Licensee

A
  • Comes onto the property without the knowledge of the owner
  • No purpose of or benefit to the owner
  • Must warn of any hidden dangers
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12
Q

Social Guest/Invitee

A
  • Been invited for some purpose
  • Customer in store
  • Must keep premises safe so no harm comes
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13
Q

Liquor Liability

A

Businesses that manufacture, sell, and serve alcohol
- Injuries resulting to patron/guests from selling alcohol

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14
Q

Dram Shop Laws

A
  • Can hold businesses liable if they over-serve someone and subsequently leave and injure someone
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15
Q

Animal Liability

A
  • Exotic animal
  • Strict liability
  • Dogs
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16
Q

Traditional Risk Management

A
  • 4 loss exposures
  • Property, net income, personnel, liability
  • Silo approach (teams dont share information with each other)
  • Focus on mostly pure insurable risks
17
Q

Ownership Interest

A
  • Has either present or future ownership interest
  • Future, when you have a car loan or mortgage
18
Q

Secured Creditor

A
  • The bank or lender when you take a loan for a house/car
  • They hold a title - i.e. they own it
19
Q

Buyers and Sellers

A

Shipping Products

20
Q

Bailee Interest

A
  • A bailee is an entity that receives property from another for a business
  • A bailee is the owner of the property
21
Q

Tenant Interest

A
  • Contained use interest
  • Responsible for returning the property in reasonable condition
    Ex) Security deposit should be returned if the property is in reasonable condition
22
Q

Net Income Loss Exposure

A
  • A firm suffers a primary loss - as the result suffers a secondary loss that results in indirect expenses
    Ex) Losing a large customer
23
Q

Personnel Loss Exposure

A
  • Risk that an organization will suffer losses due to key employees suffering a loss
    Ex) Employee suffers illness, death, disability, retirement, resignation, etc.
24
Q

Negligence and Legal Liability

A
  • Wealth losses from liability exposure
  • Money loss from being sued
  • Legal fees
25
Q

When is legal liability established

A
  • There was negligence
  • There was actual damage or loss
26
Q

What constitutes negligence?

A
  • Failure of a person to exercise the proper degree of care
  • The burden of proof is on the injured party
  • Situations with children
27
Q

Measurement Issue

A
  • Usually easy to establish injury or damage occurred
  • Hard to establish the amount of damage
28
Q

Property loss/damage (PD)

A
  • Relatively simple to calculate
29
Q

Bodily Injury (BI)

A
  • Moderately difficult to calculate
  • Special damages
30
Q

General Damages

A
  • Compensate for intangible losses
  • Pain and suffering
  • Mental anguish
31
Q

Punitive Damages

A
  • Amounts assessed as a form of punishment
  • Gross negligence is involved
  • Very difficult to estimate and measure
32
Q

ERM

A
  • Risk-based approach to managing an enterprise
  • 4 quadrants of risk
  • Hazard, financial, operational, and strategic
33
Q

Hazard Risks

A

The potential for harm from something in the workplace that is not under the control of the business

34
Q

Financial Risks

A
  • Inflation
  • Foreign exchange rates/currency
  • Stock market
  • Interest rates
  • Volatility
  • Liquidity
    NOT NET INCOME LOSSES
35
Q

Operational Risks

A
  • Manufacturing products
  • Supply chain issues
  • Regulatory issues
  • Workplace violence
36
Q

Strategic Risks

A

The internal and external events that may make it difficult, or even impossible, for an organization to achieve their objectives and strategic goals

37
Q

How to identify exposures

A

1) Inspect the facility
2) Contract analysis
3) Look at past information
4) Share loss information with other similar organizations
5) Saftey checklist from insurance companies
6) Flow chart approach
7) Ask employees/managers in the firm
8) Financial statement approach

38
Q

Strict Liability

A
  • Says in certain situations liability is assigned regardless of fualt

A&P(1) (17 decks)

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