Unit 5

Question 1

absolute / strict

Answer 1

liability without negligence

Question 2

compensatory damages

Answer 2

special, provable monetary losses (limited tort)

general nonmonetary losses (full tort)

Question 3

bodily injury (BI)

Answer 3

injury to the body

medical bills, lost wages, pain and suffering, even death

Question 4

B ailed

Answer 4

Bonds premium for certain bonds

Question 5

bAiled

Answer 5

Aid- first aid

Question 6

baIled

Answer 6

Interest pre/post judgement

Question 7

BaiLed

Answer 7

Loss earnings, loss of earnings for insured

Question 8

bailEd

Answer 8

expenses incurred in the investigating of a claim

Question 9

baileD

Answer 9

defense cost of hiring an attorney

Question 10

personal injury

Answer 10

hurt feelings of a person or business

Question 11

duties after a loss

Answer 11

• notify company promptly
• forward notices
• assist the company
• don’t assume liability

Question 12

negligence

Answer 12

failure to act or not act reasonably

Question 13

comparative negligence

Answer 13

finding of liability to be made even when both parties have contributed to the loss, with an award based on the extent of each party’s negligence

Question 14

intervening cause

Answer 14

an independent action that breaks the chain of causation and sets in motion a new chain of events

Question 15

statutes of limitations

Answer 15

laws provide that certain types of lawsuits must be filed within a specified time of the occurrence to be valid under law

Question 16

tort

Answer 16

civil wrong that unfairly causes someone else to suffer loss or harm
unintentional

Question 17

contributory negligence

Answer 17

law/ doctrine says if a person contributed to his/her own damages in anyway, another party cannot be held liable for the damages

Question 18

assumption of risk

Answer 18

defense against liability based on the common law principle that a person who knowingly exposes themselves to danger or injury assumes the risk of loss and cannot hold another person responsible for the loss

Question 19

last clear chance

Answer 19

a partially negligent person can, none the less recover if they are able to show that the defendant had the last opportunity to avoid the accident

Question 20

vicarious liability

Answer 20

liability for the actions of another

Question 21

punitive damages

Answer 21

gross negligence

reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit

Question 22

property damage

Answer 22

injury to property

cars, buildings etc

Question 23

limits of liability

Answer 23

split between bodily injury and property damage

• combined single
• per person
• aggregate

Question 24

restoration of limits / non- reduction of limits

Answer 24

• payment of a claim restores the occurrence limit for the next claim
• payment of an occurrence reduces the aggregate limit
• aggregate limit is restored upon renewal

Question 25

occurrence

Answer 25

either an accident or a loss that occurs over time

Question 26

liability policy exclusions

Answer 26

• damage to property or an insured
• bodily injury to an insured
• bodily injury to an employee
• nuclear energy liability
• intentional damage cause by an insured

Question 27

bonds-aid-interest-loss earnings-expenses- defense cost

Answer 27

bailed