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9 Cards in this Set
- Front
- Back
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Liability insurance |
Also called Casualty Insurance, liability insurance protects against the possibility of a claim alleging that an insured person or organization is responsible for another parties injury or damage. liability insurance pays a claim only if the insured is legally responsible for paying damages to another party. |
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Negligence |
With most liability claims, a plaintiff (the person bringing suit and seeking monetary compensation) attempts to collect damages based on the insured defendant's negligence. To establish negligence, the plaintiff must prove that the defendant owed a DUTY OF CARE and BREACHED that duty. The plaintiff must also prove that this breach of duty was the proximate CAUSE of the plaintiff's injury or damage. |
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Three broad classes of legal wrongs/perils covered |
Crime, Breach of contact, tort Breach of contract - failure to live up to the conditions or warranties contained in a contract Tort - a civil or private wrong giving rise to legal liability. (Protection against civil wrongs.) (Plaintiff/claimant brings suit against the defendant / insured.) |
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Compensable |
An injury or illness that meets the statutory standard and qualifies an employee to receive workers compensation benefits. |
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What are the two broad categories of civil damages? |
Compensatory damages - a sum of money to which a plaintiff is entitled that, so far as is possible, makes amends for the actual loss sustained.
Punitive damages - (aka exemplary damages) Damages that far exceed the actual loss. Not to be confused with general damages (pain and suffering), punitive damages are imposed only when the defendant acted in an especially outrageous manner. they are intended to discourage other people from committing similar wrongs in the future. It is a form of punishment for committing a civil wrong. |
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Defenses to negligence |
Assumption of risk Contributory negligence Comparative negligence |
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Strict (absolute) liability vs. Vicarious liability |
Strict/absolute liability: liable by nature of the cause of loss even when not careless Vicarious liability: legally responsible for actions of another |
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What are the four elements of negligence? |
DUTY OF CARE
BREACH OF DUTY OF CARE
A PROXIMAL CONNECTION BETWEEN THE BREACH AND THE LOSS OR DAMAGE THAT RESULTS FROM THE BREACH
DAMAGES RESULTING FROM THE BREACH |
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What are the two types of compensatory damages? |
SPECIAL DAMAGES: damages that are awarded to an Injured party for tangible losses. Examples include doctor bills, prescriptions, and loss of income. Each of these items has a specific, measurable dollar value; special damages are objective amounts based on facts. GENERAL DAMAGES: a monetary award to compensate for pain and suffering. Because pain and suffering cannot be measured in dollars and cents, the damages are subjective amounts requiring some judgment. |
