Property and Casualty Chapter 4

____ policies are designed to protect your assets if you or your stuff injures someone else or destroys their property and you are legally liable to pay for the damages.

Liability

Liability policy benefits are paid by your insurance company to a _____ for damage you did to their body (__) or their property (__).

third party (The Other Guy), BI, PD

The physical destruction or injury to a human being is called ____.

Bodily Injury

The physical destruction or damage to stuff is called ____.

Property damage

Injury to a person's reputation or mental state is called ____.

Personal Injury

Injury to a business's reputation or public image is called ____.

Advertising Injury

There are two ways in which you can become legally obligated to pay: ____ and _____.

Settlement and Judgment

____ law governs wrongs between individuals.

Tort

____ law governs wrongs between individuals and society.

Criminal

____ is the failure to do or not do what the Reasonable Person would do or not do in the same or similar circumstances.

Negligence

There are four elements necessary to prove a case of negligence: Duty, _____, Proximate Cause and ____.

Breach of Duty and Damages

____ Damages are those payments made to The Other Guy designed to restore them, as much as possible, to their pre-injury status.

Compensatory

____ Damages are designed to punish the wrongdoer for their evil acts.

Punitive

Legal Defenses against a law suit filed by The Other Guy would include Comparative Fault, Assumption of Risk, and _____.

Contributory Negligence

States set time limits for injured parties to sue defendants that are called the _____.

Statute of Limitations

The fact that an employer can be held responsible for the negligent acts of his/her employees during the course of their employment is called _____.

Vicarious Liability

The Medical Payments section of a liability policy can pay medical benefits to an injured person without regard to fault.

Medical Payments

____ can pay benefits for doctors, dentists, hospitals, or even funeral homes but not for ___ or _____.

Med Pay, lost wages or pain and suffering

All liability policies have ______ that pay for expenses, such as Defense Costs (Lawyers, etc) and Appeal Bonds.

Supplemental Payments

Supplemental Payments are paid by the insurance company _____ the stated policy limits.

In addition to

in addition to _____ policies are designed to pay claims that exceed the limits of the primary liability policies.

Umbrella

An Umbrella policy can broaden coverage as well as deepen coverage. However, if there is no underlying coverage, the Insured will be required to pay what is called a _____.

Self Insured Retention Layer

If you lease or rent a building (or part of a building), you need ____ Liability insurance because you are legally responsible for any negligent damage you cause to your space.

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