Section 1: Lesson 8.1 Liability Concepts & Doctrines Flashcards
A sole purpose of liability insurance us to:
pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages
The most important concept in understanding the liability insuring agreement is:
Legally obligated to pay
Liability insurance is only intended to pay for an insureds:
legal obligation
In order to be a successful adjuster, you must commit oneself to a comprehensive study of :
the law
Where in the liability insurance policy does it explain what the insurance is intended to cover?
Insuring agreement
A single limit is defined as:
the max amount the insurer will pay for any one accident or occurrence for either type of loss
Split limit policies are mostly found in what type of insurance polices:
Automobile policies
Describe the coverages provided in a split limit policy of 10/20/10
Coverage provides up to $10k of protection for BI to any one individual, an aggregate of $20k for all injuries regardless of how may individuals, and $10k for PD
A policy limit that provides $1 million in coverage for BI or PD arising form any one occurrence and no more that $2million for the entire policy term, regardless of the number of occurrences is what kind of policy?
An aggregate policy
Law that arrises form the customs of the people is known as :
Common law
Statutory law is law made where:
in the legislatures
Law that is reflected by the decisions of the courts is known as
Case Law
A legal principle that a judge can rule off of the basis of a pre existing case without considering the attorneys statements.
Stare decisis
Why is case law considered so important if statutory law applies directly to a given set of facts?
Case law is generally used to assist in the interpretation and application statutory law to various factual situations.
Which of the following is not a critical element in assessment of one’s legal liability?
What the complaining party wants
