Vocabulary 2

Question 1

Trespass

Answer 1

Unlawful interference with one’s personal, property or rights.

Question 2

Defamation

Answer 2

A statement that caused unjustified injury to the reputation of another person and which results I the loss to that person of the esteem, confidence, and respect of a considerable part of the community.

Question 3

Easement

Answer 3

A right of persons to use land belonging to others.

Question 4

False arrest

Answer 4

Includes a false imprisonment with the additional feature of detaining a person with the intention to turn over to the police for prosecution.

Question 5

False imprisonment

Answer 5

Holding someone without lawful justification in a place against their will.

Question 6

Libel

Answer 6

Written defamation

Question 7

Slander

Answer 7

Spoken defamation

Question 8

Malicious prosecution

Answer 8

A suit begun in malice without probable cause to believe the charges can be sustained.

Question 9

Aggregate limit

Answer 9

The most the policy will pay during the policy period for all claims for which insurance is provided.

Question 10

Bodily injury

Answer 10

Liability that may arise from injury or death of another person.

Question 11

Occurrence

Answer 11

An unexpected event. In commercial liability insurance, it means an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Question 12

Personal injury

Answer 12

Injury, other than bodily injury, arising out of libel or slander, malicious prosecution, false imprisonment or wrongful eviction.

Question 13

Property damage

Answer 13

Physical injury to tangible property and the loss of use of the property, whether physically injured or not.

Question 14

Particular average

Answer 14

A partial loss to a specific shipment, other than a general average.

Question 15

Total loss of a part (of the shipment)

Answer 15

The total loss of one shipper’s cargo, without total loss of a part of a single shipment.

Question 16

Valuation clause

Answer 16

A clause wherein the insurer and the insured agree on the value of the insured property in advance of any loss to it.

Question 17

Bond limit

Answer 17

The amount of credit given to the principal by the surety. The amount of penalty the surety is prepared to pay should the principal default.

Question 18

Obligee

Answer 18

The party to whom someone else is obligated under contract.

Question 19

Principal

Answer 19

The party primarily liable.

Question 20

Surety

Answer 20

Sure certain and secure

Question 21

Suretyship

Answer 21

A contract whereby one person guarantees the performance of another.

Question 22

Surety bond

Answer 22

An obligation of the insurance company or surety to protect one against financial loss caused by the acts or failure of another.

Question 23

Consent of surety

Answer 23

Written undertaking by surety guaranteeing the owner that the surety is agreeable to issuing specified bonds to ensure the performance of the contract if the contractor’s bid is accepted and he has entered into a contract with the owner.

Question 24

Contract bond

Answer 24

A surety bond guaranteeing the performance of a contract.

Question 25

License

Answer 25

Permission to do something.

Question 26

Net worth

Answer 26

Amount of money remaining after all assets have been liquidated and all liabilities cleared.

Question 27

Non-statutory bond

Answer 27

A bond that is not required by law but flows from the contract or agreement between the parties.

Question 28

Permit

Answer 28

A document that grants one the right to do something.

Question 29

Statutory bond

Answer 29

Required by federal or provincial regulation, statute or a municipal ordinance.

Question 30

Working capital

Answer 30

The difference between current assets and current liabilities.

Question 31

Contractual transfer

Answer 31

A means of generating funds from outside a business to pay for losses.

Question 32

Duplication

Answer 32

In risk management, the complete reproduction of the organization’s own standby asset or facility to be kept in reserve.

Question 33

Expediting costs

Answer 33

Extra costs to speed up the recovery of a business after a loss.

Question 34

Going concern value

Answer 34

The value of the assets of a firm that is actively in business, rather than the value if those assets were disposed of in liquidation sale.

Question 35

Loss exposure

Answer 35

The chance of financial loss to the organization as the result of a particular peril striking a thing of value.

Question 36

Retention

Answer 36

Includes all means of generating funds from within the business to pay for losses.

Question 37

Risk control

Answer 37

The objective of risk control is to reduce the frequency and severity of losses as much as possible with the resources available.

Question 38

Risk financing

Answer 38

Concerned with paying the losses that inevitably occur.

Question 39

Risk management

Answer 39

The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization.