Unit 5

Question 1

Casualty

Answer 1

pays other guy

Question 2

Negligence

Answer 2

Legal duty owed
Breach of duty
Proximate cause
Damages

Question 3

Contributory Negligence

Answer 3

if insured contributes to damage in anyway, another party cannot be liable

Question 4

Comparative Negligence

Answer 4

allow finding of liability to be made even when both parties have contributed

Question 5

Assumption of risk

Answer 5

insure voluntary and knowingly participated in dangerous activity caused by injury

Question 6

Intervening cause

Answer 6

An independent event affects chain of events

Question 7

Statute of limitations

Answer 7

time limit

Question 8

Last clear chance

Answer 8

a partial negligent person can recover if proof is provided defendant had last opportunity to avoid accident

Question 9

Absolute/ Strict Liability

Answer 9

insured participation in hazardous activity may be held responsible for damages to others

Question 10

Vicarious Liability

Answer 10

liability for actions of another

ie: employer responsible for employee actions

Question 11

Compensatory Damages

Answer 11

reimburse the injured party only for losses that were actually sustained

Special (Limited) Tort: provable monetary losses

General (Full) Tort: Nonmonetary losses
Ie: pain and suffering

Question 12

Punitive Losses

Answer 12

comp in addition to actual damages to punish negligence

Question 13

Bodily Injury ( BI)

Answer 13

Injury to body

ie: Med bills, lost wages, pain and suffering, death

Question 14

Property Damage ( PD)

Answer 14

injury to prop

ie: cars buildings etc

Question 15

Personal Injury (PI)

Answer 15

Hurt feelings of person or business

ie: slander, libel, false arrest and invasion of privacy

Question 16

Split Limit of Liability

Answer 16

has separate limit for BI per person per accident and PD has separate limit per accident

Question 17

Combined ( Single) Limit of Liability

Answer 17

one limit that applies for both BI and PD

Question 18

Per Person Limit of Liability

Answer 18

Limit for any one person per incident

Question 19

Aggregate Limit of Liability

Answer 19

All losses occurring within one policy limit

Question 20

Restoration of Limits / Non- Reduction of Limits

Answer 20

Payments of a claim restores the occurrence limit for next claim

Payment of an occurrence reduces aggregate limit

Aggregate limit resets upon renewal

Question 21

BAILED

Answer 21

Bonds
Aid
Interest
Loss earnings
Expenses
Defense cost

Question 22

Duties after a loss

Answer 22

Promptly notify insurer
forward Notices
Assist insurer
Dont assume liability

Question 23

Liability Exclusions

Answer 23

Damage to prop of insured
BI to insured/ employed
Nuclear energy liability
intentional damage caused by insured