Study 5: Underwriting the Risk: Liability - Key Terms Flashcards
Statute law
A law set down in a government act and passed by legislature.
Umbrella policy
A special form of liability policy designed to protect the insured for certain unknown contingencies over and above other coverages and to provide excess insurance.
Contributory negligence
Many accidents are the partial fault of both parties who are involved in the accident. The plaintiff who sues another party for damages may also be guilty of some negligence, which is a concurrent cause of the damage, and is therefore guilty of contributory negligence.
Hold-harmless agreement
An agreement that allows one party to protect another party against any future losses or claims that may result from a particular activity. Also known as an indemnity agreement.
Occupancy
The act of holding possession of a property or premises. The term implies the use of the building for the purposes described in the policy, and no other. An occupied building has furnishings and/or people in it.
Tort
A legal wrong arising from a duty fixed by law. A breach of this duty that causes injury to persons or property is repressible by legal action for damages. Liability for tort involves a private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual.
Licensee
A person who has permission to enter a premises for their own purposes.
Liability insurance
Insurance that agrees to indemnify the insured for sums they may be required by law to pay to third parties as damages for bodily injury or damage to property. The maximum amount of insurance provided under a policy of liability insurance.
Negligence
Failure to use the degree of care expected from a reasonable and prudent person.
Private nuisance
An unlawful interference of a person’s enjoyment and use of their land.
Contractual entrant
A person who enters onto premises under a contract with the occupier; for example, a hotel guest or a theatre-goer.
Public nuisance
An action or a thing that interferes with the general public. It interferes with the public as a class, not merely with one person or a group of citizens.
Nuisance
In law, a class of wrong that arises out of unreasonable, unwarranted, or unlawful use by a person of their own property, whether that property be real or personal or from their own improper, indecent, or unlawful personal conduct and producing an annoyance, inconvenience, discomfort, or hurt to others or to their property that the law would presume a consequential damage. In insurance claims, it is most frequently met as a cause of action, arising from the escape of some obnoxious substance.
Duty of care
The obligation that a person has to exercise reasonable care with respect to the interests of others, including protecting them from harm.
Trespasser
A person who wrongfully enters onto someone else’s land with neither the right nor permission to be there.