Unit 5: Basics of Casualty Insurance Flashcards
Covers personal belongings and real property…
Property
Pays the other guy
Casualty
Occurs when a person claims to have been injured by an insured, or when a person’s property has been damaged by the insured’s actions
Third party losses
A civil wrongful that unfairly causes someone else to suffer loss or harm resulting in legal liability for the personal who commits the tortious act…
Tort
Failure to exercise the care that a reasonable person would exercise in like circumstances. Failure to do or not do something that ordinarily should be or not be done that results in a loss…
Negligence
- Legal duty owed - owe a duty
- Breach of legal duty owed - breach the duty
- Proximate cause - be the proximate cause
- Damages - costs to repair damages
Establishing Negligence
If a person contributed to his/her own damages in any way, another party cannot be held liable for the damages…
Contributory negligence
Allows a finding of liability to be made even when both parties have contributed to the loss, with an awarded based on the extent of each party’s negligence…
Comparative negligence
Bars or reduces the right of recovery against a negligent third party when he voluntarily and knowingly participated in the dangerous activity that caused his own injury. This doctrine is frequently associated with injuries incurred during sporting events…
Assumption of risk
When an independent event affects the chain of events. It may also serve as a defense against liability…
Intervening cause
Provide that certain types of lawsuits must be filed within a specified time of the occurrence to be valid under the law.
Statutes of limitations
Doctrine that is employed in contributory negligence jurisdictions. Under this doctrine, a partially negligent person can, nonetheless, recover if he able to show that the defendant had the last opportunity to avoid the accident.
Last clear change
Liability without negligence
Absolute/strict liability
When a person may be held responsible for the negligent acts of another person who has direct liability
Vicarious Liability
Reimburse the injured party only for losses that were actually sustained
Compensatory Damages
Include all direct and specific expenses involved in a particular loss, such as medical expenses, lost wages, funeral expenses and the cost to repair or replace damaged property. Sometimes referred to as limited tort
Special damages
Compensate for things such as pain and suffering and mental anguish. Sometimes referred to as full tort…
General Damages
Intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.
Punitive Damages
Protects an insured from financial losses arising out of liability claims by transferring the burden of the loss from the insured natured to insurer.
Liability Insurance
Injury, sickness, disease and death arising out of injury, sickness, or disease…
Bodily injury
Damage to or destruction of property, including Loss if use of the property…
Property damage
Includes slander, libel, false arrest, and invasion of privacy… hurt feelings of a person or business
Personal Injury
Split
