Section 1: Lesson 8.3 Defenses to Liability Flashcards

1
Q

The state in which they live provides that any party to an accident is at least partially at fault, there can be no recovery. Bill and Sam’s carriers both deny any payment to the other party. This is an application of which defense?

A

Contributory Negligence

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2
Q

Albert’s defense , and the method of determining. damages due each party assigning percenteges of negligence to each party, is known as:

A

Comparative negligence

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3
Q

The other driver accuses Barry of negligence in improperly changing lanes. Which of the following would NOT be a defense that Barry could use against the driver and his claim of negligence?

A

Breach of Warranty

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4
Q

A defense that completely bars recovery when a claimant knowingly enters into an act knowing full well that the act is dangerous and that there is a rick of injury or damage is known as what?

A

Assumption of the risk

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5
Q

Contributory Negligence and Assumption of the Risk are two defenses that have abandoned in most states because legislatives and the courts consider them to be:

A

Too harsh on the injured party or plaintiff

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6
Q

In a claim or lawsuit, the burden of proving damages rests with:

A

The Plaintiff

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7
Q

Which of the following is NOT an example of (Compensatory damages):

A

A jury verdict of $1,000,000 against the defendant to punish them for being for its reprehensible action in causing a loss.

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8
Q

A jury issues a verdict against a defendant for $1 Mil to punish the defendant for reprehensible behavior and as deterrent to doing it again. What kind of damages is this known as?

A

Punitive damages

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9
Q

Jason filed a suit against the other company and was ultimately awarded damages for his out of pocket medical expenses and lost income. What kind of damages were these?

A

Special damages

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10
Q

Jason was also awarded 50,000 for his pain and suffering. What kind of damages does this represent ?

A

General damages

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11
Q

Which of the following is NOT a law that can ultimately affect one’s legal liability?

A

Valued Policy Law

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12
Q

A law that provides that one cannot sue the government is known as what?

A

Sovereign immunity

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13
Q

Jane waited too long to file suit against the tortfeasor, and by the time she did, her cause of action was no longer permitted under law. What kind of Law affected one’s.

A

Statute of Limitations

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14
Q

What kind of law can limit Jason’s liability to sue his employer in tort for damages if his employers is at fault?

A

Worker’s Compensation

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15
Q

A set of laws that define the legal rights of the survivors of a deceased individual, whose death is a result of a tort, is called a:

A

Wrongful Death Act

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16
Q

Which of the following statements is NOT true?

A

If a question of coverage arises and cannot be swiftly resolved in favor of the insured, the carrier should immediately tender the claim to its attorney and deny the claim.

17
Q

Joe wanted the case to go to trial, but Joe’s insurance company settled with the plaintiff for 10,000. Joe called the insurance company and threatened the lawsuit. What is the policy condition that gives the carrier such a right ?

A

Right of settlement

18
Q

When a carrier receives a lawsuit filed against one of its insureds, it must assume everything that is claimed is true, and if those allegations were truthful and would fall within the coverage provided, then there is an obligation to defend the lawsuit. This concept refers to?

A

The duty to defend

19
Q

The insurance company denied Harrys coverages for starting a fight and hitting his neighbor under which of the following policy conditions?

A

The duty to Cooperate

20
Q

A communication from the insurer to its policyholder outlining items that may cause questions of coverage is known as?

A

A reservation of rights letter