Casualty Inurance
covers the insured for losses that cause injury or property damage to another person and in which the insured is found to be legally responsible
third-party losses
occur when a person claims to have been injured by an insured, or when a person's property has been damaged by the insured's actions
tort
-a civil wrong that unfairly causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act
-insured can only be made liable to pay money
Negligence
failure to exercise the care that a reasonable person would exercise in like circumstances
Establishing Negligence
1. Legal duty owed
2. Breach of legal duty owed
3. Proximate cause
4. Damages
Contributory negligency doctrine
if a person contributed to his/her own damages in any way, another party cannot be held liable for the damages
Comparative negligence laws
allow a finding of liability to be made even when both parties have contributed to the loss, with an award based on the extent of each party's negligence
Assumption of risk
reduces the right of recovery against a negligent third party when he voluntarily and knowingly participated in the dangerous activity that cased his own injury
Intervening cause
when an independent event affects the chain of events
-may also serve as a defense against liability
Statues of limitations laws
provide that caertain types of lawsuits must be filed within a specified time of the occurrence to be valid under the law
last clear chance
a doctrine that is employed in contributory negligence jurisdictions
a partially negligent person can recover if he is able to show that the defendance had the last opportunity to avoid the accident
Absolute liability
law to those participating in activites that are considered especially hazardous
-most frequently applied to activities involving dangerous materials, hazardous operations, or dangerous animals
Strict liability
used in reference to products liability
-injured party does not have to prove negligence when suing a tire manufacturer
Vircarious liability
when a person may be held respoinsible for the negligent acts of another person who has direct liability
damages
monetary compensation
compensatory damages
-reimburse the injured party only for losses that were actually sustained
Special damages
-a type of compensatory damage that includes all direct and specific expenses involved in a particular loss, such as medical expenses, lost wages, funeral expenses, adn the cost to repair or replace damaged property
-referred to as limited tort
General damages
-type of compensatory damage that compensates for things such as pain and suffering and mental anguish
-referred to as full tort
Punitive damages
-intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit
-punishment
Liability insurance
-protects an insured from financial losses arising out of liability claims by transferring the burden of the loss from the insured to insurer
-insurer pays up to the limit of liability
Bodily Injury
injury, sickness, disease adn death
Property damage
damage to or destruction of property including loss of use of the property
Personal injury
includes slander, libel, false arrest, and invasion of privacy
aggregate limit
limit that applies to all losses occurring within any one policy period
Liability supplementary payments
-no extra cost
BAILED
Bonds
Aid
Interest
Loss earnings
Expenses
Defense costs
Liability policy exclusions
-damage to property owned by the insured
-damage to property in the insured's care, custody, or control
-bodily injury to an insured
-losses covered under workers' compensation laws
-losses covered under nuclear energy liability policies
-injuries or dama