Unit 5: Basics of Casualty Insurance

Question 1

Property Insurance

Answer 1

Covers personal belongings and buildings

Question 2

Casualty Insurance

Answer 2

Pays the “other guy”

Question 3

Third-Party Losses

Answer 3

• First party is the insured
• Second party is the insurance company legally representing or defending the insured
• Third party is the “other guy”

Question 4

Liability Insurance covers unintentional torts

Answer 4

Tort: civil wrong that causes someone else to suffer loss

Negligence: failure to act or not act reasonably

Question 5

Elements of Negligence

Answer 5

• Owe a duty
• Breach the duty
• Be the proximate cause
• Damages

Question 6

Contributory Negligence

Answer 6

If a person contributed to their own damages, another party cannot be held liable

Question 7

Comparative Negligence

Answer 7

Compare amounts of fault and damages awarded based on that

Question 8

Assumption of Risk

Answer 8

Third part voluntarily and knowingly participated in the dangerous activity that caused their own injury

Question 9

Intervening Cause

Answer 9

An independent event affects the chain of events

Question 10

Statues of Limitations

Answer 10

Laws provide that certain types of lawsuits must be filed within a specified time of the occurrence

Question 11

Last Clear Chance

Answer 11

A partially negligent person can recover if he is able to show that the defendant had the last opportunity to avoid the accident

Question 12

Absolute Liability

Answer 12

Imposed by law on those participating in certain activities that are considered especially hazardous like activities involving dangerous materials, hazardous operations, or dangerous animals

Question 13

Vicarious Liability

Answer 13

When a person may be held responsible for the negligent acts of another person who has direct liability