Unit Five Basics of Casualty Insurance Flashcards
What is the difference between property insurance and casualty insurance?
Property insurance covers my personal belongings and real property
Casualty insurance pays the other guy
What is a Tort?
Civil wrong that causes someone else to suffer loss
Ex running stop sign
What is negligence?
Failure to act or not act reasonably
What are the four elements of negligence?
• owe a duty
• breach the duty
• be the proximate cause
• Damages
What are the four elements of negligence?
• owe a duty
• breach the duty
• be the proximate cause
• Damages
What are the six defenses against a claim of negligence by another?
• contributory
• comparative
• assumption of risk
• intervening cause
• statue of limitations
• last chance
What is absolute/strict liability?
Liability without negligence
What is vicarious liability?
Liability for the actions of another
What are the two types of damages?
Compensatory and punitive
What are compensatory damages in the two types of compensatory damages?
Reimbursement the injured party only for losses that were actually sustained
the two types are special damages, and general damages
What are punitive damages?
Gross negligence
List the three types of liability insurance
Bodily injury (BI)
Property damage (PD)
Personal injury (PI)
What are the four limits of liability?
• Split (bodily injury and property damage)
• combined single
• per person
• aggregate
What are the duties after a loss?
• notify company promptly
• Forward notices
• assist the company
• don’t assume liability
What are the five liability policy exclusions?
• damage to property of an insured
• bodily injury to an insured
• bodily injury to an employee
• nuclear energy liability
• intentional damage caused by an insured
