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23 Cards in this Set
- Front
- Back
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Bases for Legal Liability |
1. Torts 2. Contracts 3. Statutes |
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Legal Liability |
Refers to a person's or orgnization's status as legally responsible for injury or damage suffered by another person or organization |
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Tort |
Wrongful act/omission committed by one party against another, that causes harm and may lead to a civil lawsuit |
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Types of Tort ... (NSI) |
1. Negligence 2. Strict Liability 3. Intentional Acts |
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Four Elements of Negligence ... (DDPD) |
1. Duty Owed 2. Duty Breached 3. Proximate Cause 4. Damages |
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Vicarious Liability |
Legal responsibility that arises when one party is held liable for another partys actions |
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Example of Vicarious Liability |
Employer is vicariously liable for the actions of their employees |
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Contributory Liablity |
Person who's been harmed and cannot recover damages because he/she contributed to the negligence in a way that caused the harm |
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Comparative Negligence |
Both parties of the loss share the financial burden of the bodily injury/ property damage according to their respective degrees of fault. |
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Strict Liability Torts |
arises from inherently dangerous activities resulting in harm to another; regardless of the degree of care taken |
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Another name for Strict Liability Tort |
Absolute Liability |
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Intentional Torts |
Tort committed with the intent to cause harm/ with intent to do the act that causes harm |
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Statutory Liability |
Legal liability imposed by specific statute or law |
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No Fault Law |
An effort to reduce the number of lawsuits resulting from car accident ; which restrict or eliminate the right to sue the other party in an accident , except in more serous cases defined by the law |
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Liability W/O regard to Fault
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Workers compensation statute that eliminates an employees right to sue the employer for most related injuries and also imposes an employer automatic liability to pay specified benefits
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It arises when someone’s rights under a contract’s terms are violated. |
Contractual Liability |
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Process of Claim Handling |
Acknowledge & assigning the claim Identifying the policy Contacting the insured/insured's rep Investigating & documenting claim Determining the cause of loss Concluding the claim |
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Reservation of Rights Letter |
A letter sent to insured that specifies coverage issues & informs insured that the insurer is handling the claim with understanding that the insurer may later deny coverage should facts warrant it |
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If claim rep fails to handle claim consistently |
Insured could be responsible for paying for claims that are not their responsibility, may result in loss of policy, bad faith claim |
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Ways claims are reported |
Telephone, third party, electronic , ACORD form, law suit, mail
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What happens when acknowledging the claim & Purpose |
contact insured asap via telephone, email, internet, or mail ; advise insured claims received and provide name & contact info of assigned rep and claim # |
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What happens when Identifying the policy & Purpose |
Claim rep determines if policy was in force on the date of loss; Claim rep confirms whether coverage exists under policy and whether insured followed policy terms and conditions |
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Purpose of contacting the insured/ insured rep |
reassures insured claim is being handled and gives claim rep opportunity to explain process and begin investigation |
