P&c Topic 9 Liability Underwriting Part 1

Front 1

Law of Torts

Back 1

• Legal liability stems for law of torts, contracts, or statutes.

• Violation of a persons rights by another

Front 2

Tort

Back 2

• A private wrong
  

• Torts lead to civil action

• Commonly classified as: Intentional or unintentional.

• Intentional: Assault, libel, slander
• Unintentional: Negligence or carelessness

Front 3

Most common cause of Legal Liability

Back 3

Negligence

Front 4

L.L. is established when:

Back 4

• There was negligence

• There was an actual damage or loss

• The negligence was the cause of loss
• The person injured was free from fault

Front 5

What Constitutes Negligence?

Back 5

• Failure of a person to exercise the proper degree of care

• Burden of proof is on the injured party

Front 6

Absolute/ strict liability

Back 6

• L.L is established bc accidents happen
• Imposed whether anyone at fault- esp hazard activity

• Ex: WC, exotic Animals

Front 7

Compensatory damages

Back 7

• Paid to compensate injured party for the harm caused to them

Front 8

Punitive Damages

Back 8

• Punish defendants whose conduct is questionable or those found guilty of gross negligence
• Send a message

Front 9

Liability Types

Back 9

• Vicarious- ER responsible for EE or parent for child
• Premises- liable for guest
• Operational- contractors
• Joint and serval- search for deep pockets
• Product
• Liquor
• General

Front 10

Operations Liability

Back 10

• Operations conducted away from premises

• Uncompleted work

• A.K.A operations in progress

Front 11

Physical Hazard- common

Back 11

• common-slip and fall type claims

• uneven stairs, poor lighting, poor housekeeping, unsafe areas

Front 12

Physical Hazards- Special

Back 12

• Special- more unique to a certain type of business
  

• Chemicals, dust, explosives, heavy material

Front 13

Product Liability

Back 13

• McDonalds Hot coffee case

• Manufactures of a faulty product that injures someone or damages property may be held L.L.

Front 14

Product Liability- Negligence

Back 14

• Product is negligently made or improperly designed.

• Proper warning is not given to consumer

Front 15

Product Liability Losses

Back 15

• Cost of defending and paying claims for injury

• Cost of recalling any batches of products suspected of being defective

Front 16

Product Liability questions

Back 16

• Product Hazards? (lawnmower vs. Calculator)
• What representations or promises made? (subway- footlong)
• Instructions easy to understand?
• Loss control considered in product design?
• Quality control checks?
• Records of products sold and key components?

Front 17

Underwriting Personal Liability

Back 17

• Individuals and families

• Usually covered under homeowners, tenants, and umbrella policy.

• Arise from premises liability, operating a vehicle, living life

• Non-business activities (bra example)

Front 18

Underwriting Premises

Back 18

• Attractive Nuisance

• uneven sidewalk

• Maintaince and lighting of property

• Vicious dogs- besides exclusions

• Swimming pool, trampoline, hot tube

• Being renovated

• Any part of permises rented to others

Front 19

Attractive Nuisance

Back 19

Items that attract children onto premises- (pools, dogs, trees)

Front 20

Underwriting premises - insurer inspection

Back 20

• Premium is low so insurer does not spend time inspecting property
  

• Often relies on asking questions

Front 21

Dogs that are excluded from premises liability

Back 21

• Pit bull, rot wilter, german shepard

Front 22

Personal activities liability

Back 22

• Children causing damages

• Unlicensed recreational vehicle- ATV

• Completed Operations-food

• Sports liability- (sues friend over lost scholarship)

Front 23

Professional Liability

Back 23

• Malpractice

• Directors and Officers (CEOs)

• Fiduciary Liability

• Employment practices Liability

Front 24

Malpractice

Back 24

• Physicians and E&O exposures for professional

• (attorneys, insurance agents, accountants, etc.)
  

Front 25

Professional Claims- ego clause

Back 25

• Usually include a condition allowing insurer to settle out of court without policyholders consent

Front 26

professional Claims factors

Back 26

• Market trends (accounting scandals)

• Job market

• Local conditions

Front 27

Underwriting professional Liability- Medical Malpratice- High risk

Back 27

• Specialistic- anesthesiologists neurosurgeons, OB-GYN

Front 28

Underwriting professional Liability- Medical Malpratice- considerations

Back 28

• number of years in practice

• education
• professional reputation
• claims history

Front 29

Underwriting professional Liability- non medical high risks

Back 29

• Lawyers

• Accountants

• Insurance Agents