Study 8: Liability Insurance - Key Term Flashcards Preview

C130 Essential Skills for Agent/Broker > Study 8: Liability Insurance - Key Term > Flashcards

Flashcards in Study 8: Liability Insurance - Key Term Deck (42)
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1
Q

statute law

A

A law set down in a government act and passed by legislature.

2
Q

precedent

A

A legal decision that serves as a basis to resolve subsequent disputes in similar cases.

3
Q

tort

A

A legal wrong arising from a duty fixed by law. A breach of this duty that causes injury to persons or property is repressible by legal action for damages. Liability for tort involves a private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual.

4
Q

negligence

A

Failure to use the degree of care expected from a reasonable and prudent person.

5
Q

private nuisance

A

An unlawful interference of a person’s enjoyment and use of his or her land.

6
Q

public nuisance

A

A cause of action for personal injury or other loss in which a private claimant must be able to show that he or she incurred a special loss beyond the inconvenience or annoyance suffered by the general public.

7
Q

occupancy

A

The act of holding possession of a property or premises. The term implies the use of the building for the purposes described in the policy, and no other. An occupied building has furnishings and/or people in it.

8
Q

occupier

A

The person who has immediate supervision or control of the premises and the power to admit or deny entry to others.

9
Q

trespasser

A

A person who wrongfully enters onto someone else’s land with neither the right nor permission to be there.

10
Q

licensee

A

A person who ahs permission to enter a premises for his or her own purposes

11
Q

contractual entrant

A

A person who enters onto premises under a contract with the occupier; for example, a hotel guest or a theatre-goer.

12
Q

invitee

A

A person who is expressly or impliedly invited onto the premises for some purpose involving economic or potential economic benefit to the occupier of the premises. For example, a customer entering a store for the purpose of making a purchases.

13
Q

attractive nuisance

A

A legal tort doctrine that holds that any person who has or creates any condition on her premises, private or public, that may reasonably be considered to pose a danger to children and at the same time attract them (to it) has a duty to take precautions as a reasonable person would do to prevent injury to minors of tender years.

14
Q

strict liability

A

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

15
Q

contributory negligence

A

Many accidents are the partial fault of both parties who are involved in the accident. The plaintiff who sues another party for damages may also be guilty of some negligence, such is a concurrent causes of the damage, and is therefore guilty of contributory negligence.

16
Q

defamation

A

Making false or derogatory statements in writing or orally that damage a person’s character, reputation, or business.

17
Q

libel insurance

A

Insurance against claims arising from alleged libel, slander, defamation of character, ect. Principally written for the protection of those engaged in the publishing or advertising fields, as well as TV and radio broadcasters. Also provided as an extension to a liability policy as part of personal injury cover, which also includes false arrest, malicious prosecution, and wrongful eviction.

18
Q

slander

A

The oral utterance or spreading of falsehood harmful to another’s reputation. Slander is spoken; libel is written.

19
Q

additional insured

A

A person other than the named insured who is protected by the terms of the policy. The additional insured may be named or unnamed.

20
Q

vicarious liability

A

A situation in which one party – for example, an employer – is held partly responsible for the unlawful actions of a third party, an employee. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party, and is negligent in carrying out that responsibility and exercising that control.

21
Q

personal liability

A

Liability insurance for an individual’s personal liability exposures such as premises, personal activities, some contracts, and certain incidental coverages. This insurance does not include automobile liability or business-related losses.

22
Q

premises

A

A building, including the land immediately surrounding it and belonging to it.

23
Q

legal liability

A

Liability imposed by law on individuals or corporations to pay for harm done to others. Such law may be the common law, statute law, or customs that over a period of time have taken on the same status as law. Legal liability may also be assumed under the terms of a contract.

24
Q

compensatory damages

A

A sum of money to which a plaintiff is entitled that makes amends for an actual loss sustained and nothing more.

25
Q

bodily injury

A

A term used in auto and liability policies meaning physical injury, including sickness, disease, mental injury, shock, or death.

26
Q

property damage liability insurance

A

Protection against liability for damage to the property of another, including the loss of the use of property.

27
Q

aggregate

A
  1. To bring together.

2. The total sum, mass, or assemblage; overall total.

28
Q

occurrence

A
  1. A happening or event
  2. The continual or repeated exposure to an unfavorable situation neither intended nor expected to cause injury or damage.
  3. The grouping of related losses into a single loss situation.
29
Q

personal injury liability

A

Injury other than bodily injury arising out of defined causes that usually include false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person’s right to privacy other than in the course of advertising, broadcasting, television, or publishing.

30
Q

products and completed operations insurance

A

Liability insurance, generally for contractors, for product liability and for claims arising out of completed work.

31
Q

environmental impairment liability (EIL) insurance

A

A specialized insurance policy that covers liability and sometimes cleanup costs associated with pollution.

32
Q

respondeat superior

A

A legal maxim meaning that in certain cases the master is liable for the wrongful acts of his servant, and a principal is similarly responsible for the wrongful acts of his agent.

33
Q

non-owned automobile insurance

A

A policy that protects the insured against third-party claims arising out of some other person using his own vehicle in the business of the insured.

34
Q

professional liability insurance

A

Protects professionals against liability for damages and the cost of defense arising from their alleged or real professional errors or omissions in the practice of their profession.

35
Q

claims-made basis

A

A provision in some insurance and reinsurance contracts covering only claims made during the term of the contract.

36
Q

directors and officers (D&O) liability insurance

A

Protection for officers and directors of a corporation against damages resulting from negligent or wrongful acts in the course of their duties. Also covers the corporation for expenses incurred in defending lawsuits arising form alleged wrongful acts of officers or directors. These policies always require the insured to retain part of the risk uninsured. Also called D&O liability insurance.

37
Q

umbrella policy

A

A special form of liability policy designed to protect the insured for certain unknown contingencies over and above other coverages and to provide excess insurance.

38
Q

drop-down coverage

A

A clause in umbrella policies providing that the umbrella will “drop down” over reduced or exhausted underlying policy aggregate limits. Some umbrellas maintain their own coverage terms when they drop down; others assume those of the primary policy.

39
Q

completed operations insurance

A

Coverage for injuries or damage, excluding damage to the completed work itself, occurring after the completion of an operation but attributed to that operation.

40
Q

self-insured retention (SIR)

A

A dollar amount specified in an insurance policy (usually a liability policy) that must be paid by the insured before the insurance policy will respond to a loss.

41
Q

excess insurance

A

Insurance that does not participate until all other similar insurance on the same subject is exhausted, or until the loss exceeds a previously agreed-upon amount. Where there are two policies on a risk and both contain a provision that they are “excess to all other insurance,” the problem is resolved by the general “guiding principles.” This is usually interpreted so that each insurer contributes pro rata to the loss.

42
Q

following form excess liability insurance

A

Excess liability insurance subject to terms and conditions of the primary policy.