Section 9: Property and Liability

Risk Management And Insurance 4000 with Atkinson at University of Georgia

About this deck

By: Brittney Barnes
Textbook:

Principles of Risk Management and Insurance (10th Edition)

Principles of Risk Management and Insurance (11th Edition) (Pearson Custom Business Resources)

Study Guide for Principles of Risk Management and Insurance

Studyguide for Principles of Risk Management and Insurance by George E. Rejda, ISBN 9780136117025 (Cram101 Textbook Reviews)
Created: 2012-05-01
Size: 38 flashcards
Views: 23

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Real Property

Land, all structures permanently attached to the land, and whatever is growing on the land

Personal property

all property other than real property

direct loss

occurs when there is damage to property

indirect loss

occurs when a direct loss causes expenses to increase or revenues to decline

Types of property that are not insurable

loss of goodwill
loss of a copyright
raw land

Liability exposures

loss through legal liability for harm caused to others
determined by proving negligence

bodily injury

liability for losses a person may incur because his body or mind has been harmed
payments for medical bills, loss of income, rehabilitation costs, loss of services, pain and suffering damages, punitive damages

Property damage

loss may be due to a loss from actual damage to the property, as well as loss of use of the property

personal injury

result from libel, slander, invasion of privacy, false arrest

Types of Liability Damages

bodily injury
property damage
personal injury
legal expenses

criminal law

directed towards wrongs against society

civil law

directed toward wrongs against individuals and organizations

Torts

legal injury or wrong to another that arises that of actions other than breach of contract

3 categories of torts

intentional
strict liability
negligence

Negligence

the failure to exercise the degree of care required by law

conduct that a reasonably prudent individual would exercise to prevent harm
standard of care is not the same for each wrongful act

omission

failure to do something

proximate cause relationship

requires an unbroken chain of events

imputed act

one is liable not only for one's own actions but also for the negligent acts of service or agents acting in the course of their employment or agency

vicarious liability

employers may be sued because of negligence acts of their employees

compensatory damages

compensate the victim for losses actually incurred

special damages
general damages

punitive damages

designed to punish people and organizations so that others are deterred from committing the same wrongful act

Contributory Negligence

A rule in tort law that completely bars the plaintiff from recovering any damages if the damage suffered is partly the plaintiffs own fault

comparative negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence.

Res Ipsa Loquitur

plaintiff may sometimes collect without actually proving negligence on the part of the defendant

3 requirements for res ipsa loquitur

the event is one that normally does not occur in the absence of negligence
defendant has exclusive control over the instrumentality causing the accident
injured party has not contributed to the accident in any way

joint and several liability

when an accident occurs and several different parties are negligent

superfund legislation

created by the government to help fund the cleanup cast of major pollution sites

contractual liability

one's liability may be imputed to another by contract

employer-employee liability

employers are still subject to the law of negligence with respect to employment not covered by workers' compensation laws

duties owed to employees

must provide a safe place to work
must employ individuals reasonably competent to carry out their tasks
must warn of danger
must furnish appropriate and safe tools
must setup and enforce proper rules of conduct of employees as they relate to safe working procedures

property owner-tenant liability

owner owes a certain degree of care to those who enter the premises

Attractive Nuisance Doctrine

If the defendant's premises contained some condition created and maintained by the defendant, which might attract children to enter those premises, then the defendant was held to owe child trespassers lured onto the premises a duty to take reasonable care to make the "attractive nuisance" safe

consumption or use of products liability

a manufacturer, wholesaler, or retailer is required to exercise reasonable care and to maintain certain standards in the handling and selection of the goods in which it deals

Completed Operations Liability coverage

Coverage that insures liability for bodily injury or property damage arising out of the named insured's completed work, excluding damage to the work itself.

Professional acts liability

seller of a service is required to use reasonable care not to injure others in the performance of those services

principal-agent liability

a master is liable for the acts of servants if the service or agents are acting within the scope of their employment

liability of the operator

typical damage suit in automobile liability

liability of the owner-nonoperator

automobile is not dangerous until someone gets behind the wheel