Ains - Property & Liability Insurance Principles - Chapter 8

Front 1

Fixture

Back 1

Anypersonal property affixedto real property in such a way as to become part of the real property.

Front 2

Money

Back 2

Currency, coins, bank notes, and sometimestraveler's checks, credit card slips,and money orders held for sale to the public

Front 3

Securities

Back 3

Written instruments representing either money or other property, , such as stocksand bonds

Front 4

Auto

Back 4

Asdefined in commercialgeneral liability and auto forms,a land motor vehicle, trailer,or semitrailer designedfor travel on public roads, including attached machinery or equipment; or any other landvehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed orprincipally garaged.

Front 5

Mobile equipment

Back 5

Various types of vehiclesdesigned for use principally off public roads, such as bulldozers and cranes

Front 6

Recreational vehicle

Back 6

A vehicleused for sportsand recreational activities, such as a dune buggy, all-terrain vehicle, or dirt bike

Front 7

Peril

Back 7

The cause of a loss.

Front 8

Mortgagee

Back 8

A lender in a mortgage arrangement, such as a bank or another financing institution

Front 9

Mortgagor

Back 9

Theperson or organization that borrows money from a mortgagee to finance the purchase of real property.

Front 10

Bailee

Back 10

The party temporarily possessing thepersonal property in a bailment.

Front 11

Legal liability

Back 11

Thelegally enforceable obligation of a person or an organization to pay a sumof money (called damages) to another person or organiza­tion.

Front 12

Constitutional law

Back 12

The Constitution itself and all the decisionsof the Supreme Court thatinvolve the Constitution

Front 13

Statute

Back 13

A written law passed by a legislative body, the federalor state level

Front 14

Statutory law

Back 14

The formal laws, orstatutes, enacted by federal,state, or local legisla­tive bodies

Front 15

Common law(case law)

Back 15

Laws that developout of court decisions in particular cases and estab­lish precedents for future cases.

Front 16

Criminal law

Back 16

The branch of the law thatimposes penalties for wrongs against soci­ety.

Front 17

Civil law

Back 17

Aclassification of law that appliesto legal matters not governed bycriminal law and that protectsrights and providesremedies for breaches of duties owed to others.

Front 18

Tort

Back 18

A wrongful act or an omission, other thana crime or a breach of con­tract, that invades a legallyprotected right

Front 19

Tort law

Back 19

The branch of civil law thatdeals with civil wrongs other than breaches of contractts

Front 20

Negligence

Back 20

Thefailure to exercisethe degree of care that a reasonableperson in a similarsituation wouldexercise to avoid harming others.

Front 21

Proximate cause

Back 21

A cause that, in a natural and continuous sequence unbroken by any new and independent cause, produces an event and withoutwhich the event would not have happened

Front 22

Tortfeasor

Back 22

A person or organization that has committed a tort.

Front 23

Vicarious liability

Back 23

Alegal responsibility that occurs when one partyis held liable forthe actions of a subordinate or associate becauseof the relationship between the two parties.

Front 24

Intentional tort

Back 24

A tort committed by a person who foresees (or should be able to fore­see) that his or her act will harm another person.

Front 25

Assault

Back 25

Thethreat of force against another person that creates a well-founded fear of imminent harmful or offensive contact.

Front 26

Battery

Back 26

Intentional harmful or offensivephysical contact with another person without legal justification

Front 27

Defamation

Back 27

A false written or oral statement that harms another's reputation

Front 28

Slander

Back 28

A defamatory statementexpressed by speech.

Front 29

Libel

Back 29

A defamatory statementexpressed in a writing.

Front 30

False arrest

Back 30

The seizure or forciblerestraint of a person withoutlegal authority.

Front 31

Invasion of privacy

Back 31

An encroachment on another person's right to be left alone.

Front 32

Strictliability (absolute liability)

Back 32

Liability imposed by a court or by astatute in the absence of fault when harm results from activities or conditions that are extremely dangerous, unnatural, ultra hazardous, extraordinary, abnormal, or inappropriate.

Front 33

Hold-harmless agreement

(or indemnity agreement)

Back 33

A contractual provision that obligates one of the parties to assumethe legal liability of another party.

Front 34

Warranty

Back 34

A written or oralstatement in a contract that certainfacts are true.

Front 35

Statutory liability

Back 35

Legal liability imposed by a specific statuteor law.

Front 36

Personnel loss exposure

Back 36

A condition that presentsthe possibility of loss caused by a person'sdeath, disability, retirement, or resignation that deprivesan organiza­ tion of the person'sspecial skill or knowledge that the organizationcannot readily replace.

Front 37

Key employee

Back 37

Anemployee whose loss toa firm through death or disability before retirement would have economic effectson the company.

Front 38

Disability

Back 38

Theinability (because of impairment) ofa person to meet his or her personal, social,or occupational demands; other activities of dailyliving; or statutory or other legal requirements.