KY Property & Casualty Insurance Exam
Ch. 6-10|165 Questions and Answers
Liability Loss - -This type of loss occurs when a person is determined to have
been responsible/ liable for loss to another person or their property and is
required to make financial restitution
- Negligence - -Another term for an unintentional tort. The lack of
reasonable care required to protect others from the unreasonable chance of
harm
- 1. Legal duty owed (aka Reasonable Person Rule)
2. Breach of legal duty owed
3. Proximate Cause
4. Damages - -4 Factors for establishing negligence:
- Invitee - -A person invited onto the premises involving potential benefit to
the property owner.
- Trespasser - -One who is on the premises without permission, either
expressed or implied
- Care - -A property owner owes the greatest degree of _____ to an invitee.
- Intervening Cause - -The proximate cause of a loss is an action that, in a
natural and continuous sequence, produced the loss. This sequence is
unbroken by any other factors or events, and the loss would not have
occurred without the proximate cause. When an independent action breaks
the chain of causation and sets into motion a new chain of events, this _____
_____ becomes the proximate cause
- Negligence - -Damages- if no one was adversely affected by an
individual's actions, then there is no finding of _____
- Contributory Negligence - -If a person contributed to his/ her own
damages in any way, another party could not be held liable for them. This is
called _____ _____ and no one collects on this.
- 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 existence of each party's negligence- partial payment
depending on fault
, - Assumption of Risk - -_____ of _____ applies when a person knowingly
exposes himself or herself to danger or injury. Frequently associated with
injuries incurred by spectators at sporting events
- Intervening Cause - -_____ _____ may also serve as a defense against
liability (mentioned earlier)
- Statutes of Limitations - -Another defense can be found in the _____ _____
_____ enacted in various states- lawsuits must be filed within a specified time
of the occurrence to be valid under the law.
- Strict/ Absolute Liability - -_____ _____ is imposed by law on those
participating in certain activities that are considered especially hazardous.
May be held liable for damages of another, even if not negligent. Frequent
for dangerous materials, hazardous operations, dangerous animals.
- Vicarious liability or imputed liability - -There are times when a person
may be held responsible for the negligent acts of another person called _____
_____ or _____ _____
- Third Party Losses - -Liability losses are known in the insurance business
as _____ _____ _____. This party is the person who has suffered the injury or
damage.
- Compensatory Damages - -The injured party is reimbursed only for losses
that were actually sustained. Two types- special and general
- Special Damages - -These damages include all direct and specific
expenses involved in a particular loss, such as medical expenses, lost wages,
funeral expenses, cost to repair/ replace
- General Damages - -These damages compensate for such things as pain
and suffering and disfigurement
- Punitive or Exemplary Damages - -Damages imposed to punish the
defendant and make an example out of him/her to discourage others form
behaving the same way
- Gross Negligence - -Reckless, wanton, willful misconduct. A total
disrespect for the well being of another
- Bodily Injury, Property Damage - -Most liability policies agree to pay on
behalf of the insured all sums for which the insured becomes legally liable to
pay as damages because of _____ _____ and _____ _____
, - Bodily Injury - -Injury, sickness, disease, and death arising out of injury,
sickness, or disease.
- Property Damage - -Damage to or destruction of property, including loss of
the use of the property
- Personal Injury - -Things such as slander, libel, false arrest, and invasion of
privacy (must be added by endorsement)
- out of - -If the insurance company believes its insured was negligent, it is
common practice to settle the claim (in/out of) court
- unlimited, in addition to - -Liability policies promise to defend the insured
in any suit seeking BI or PD damages, even if the charges are totally
groundless or false. Defense costs are paid (limited/ unlimited) and (in place
of/ in addition to) payments for claims
- Prejudgment Interest - -A court will sometimes award a 3rd party interest
on an award for damages to compensate for the interest the 3rd party might
have earned if he or she had received compensation at the time of injury or
damage, rater than at the time of judgement. Most liability policies cover this
_____ _____
- Supplementary Payments - -Liability policies also provide _____ _____ that
are paid in addition to the policy's regular limit of liability.
- -defense costs
-Expenses incurred in the investigation of a claim
-Premiums for certain types of bonds (bail, appeal, release of attachment
bonds)
-First Aid to others at the time of an accident
-Reasonable Expenses incurred by the insured at the company's request in
the investigation/defense of a claim
-loss of earnings
-Prejudgment interest (miss work for court appearances)
-Postjudgment interest (interest accruing on judgement after an award has
been made, but before payment) - -Supplementary payments may include:
-_____ costs
-Expenses incurred in the _____ of a claim
-_____ for certain types of bonds (bail, appeal, release of attachment bonds)
- _____ _____ to others at the time of an accident
- _____ _____ incurred by the insured at the company's request in the
investigation/defense of a claim
-loss of _____
-_____ interest (miss work for court appearance)
Ch. 6-10|165 Questions and Answers
Liability Loss - -This type of loss occurs when a person is determined to have
been responsible/ liable for loss to another person or their property and is
required to make financial restitution
- Negligence - -Another term for an unintentional tort. The lack of
reasonable care required to protect others from the unreasonable chance of
harm
- 1. Legal duty owed (aka Reasonable Person Rule)
2. Breach of legal duty owed
3. Proximate Cause
4. Damages - -4 Factors for establishing negligence:
- Invitee - -A person invited onto the premises involving potential benefit to
the property owner.
- Trespasser - -One who is on the premises without permission, either
expressed or implied
- Care - -A property owner owes the greatest degree of _____ to an invitee.
- Intervening Cause - -The proximate cause of a loss is an action that, in a
natural and continuous sequence, produced the loss. This sequence is
unbroken by any other factors or events, and the loss would not have
occurred without the proximate cause. When an independent action breaks
the chain of causation and sets into motion a new chain of events, this _____
_____ becomes the proximate cause
- Negligence - -Damages- if no one was adversely affected by an
individual's actions, then there is no finding of _____
- Contributory Negligence - -If a person contributed to his/ her own
damages in any way, another party could not be held liable for them. This is
called _____ _____ and no one collects on this.
- 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 existence of each party's negligence- partial payment
depending on fault
, - Assumption of Risk - -_____ of _____ applies when a person knowingly
exposes himself or herself to danger or injury. Frequently associated with
injuries incurred by spectators at sporting events
- Intervening Cause - -_____ _____ may also serve as a defense against
liability (mentioned earlier)
- Statutes of Limitations - -Another defense can be found in the _____ _____
_____ enacted in various states- lawsuits must be filed within a specified time
of the occurrence to be valid under the law.
- Strict/ Absolute Liability - -_____ _____ is imposed by law on those
participating in certain activities that are considered especially hazardous.
May be held liable for damages of another, even if not negligent. Frequent
for dangerous materials, hazardous operations, dangerous animals.
- Vicarious liability or imputed liability - -There are times when a person
may be held responsible for the negligent acts of another person called _____
_____ or _____ _____
- Third Party Losses - -Liability losses are known in the insurance business
as _____ _____ _____. This party is the person who has suffered the injury or
damage.
- Compensatory Damages - -The injured party is reimbursed only for losses
that were actually sustained. Two types- special and general
- Special Damages - -These damages include all direct and specific
expenses involved in a particular loss, such as medical expenses, lost wages,
funeral expenses, cost to repair/ replace
- General Damages - -These damages compensate for such things as pain
and suffering and disfigurement
- Punitive or Exemplary Damages - -Damages imposed to punish the
defendant and make an example out of him/her to discourage others form
behaving the same way
- Gross Negligence - -Reckless, wanton, willful misconduct. A total
disrespect for the well being of another
- Bodily Injury, Property Damage - -Most liability policies agree to pay on
behalf of the insured all sums for which the insured becomes legally liable to
pay as damages because of _____ _____ and _____ _____
, - Bodily Injury - -Injury, sickness, disease, and death arising out of injury,
sickness, or disease.
- Property Damage - -Damage to or destruction of property, including loss of
the use of the property
- Personal Injury - -Things such as slander, libel, false arrest, and invasion of
privacy (must be added by endorsement)
- out of - -If the insurance company believes its insured was negligent, it is
common practice to settle the claim (in/out of) court
- unlimited, in addition to - -Liability policies promise to defend the insured
in any suit seeking BI or PD damages, even if the charges are totally
groundless or false. Defense costs are paid (limited/ unlimited) and (in place
of/ in addition to) payments for claims
- Prejudgment Interest - -A court will sometimes award a 3rd party interest
on an award for damages to compensate for the interest the 3rd party might
have earned if he or she had received compensation at the time of injury or
damage, rater than at the time of judgement. Most liability policies cover this
_____ _____
- Supplementary Payments - -Liability policies also provide _____ _____ that
are paid in addition to the policy's regular limit of liability.
- -defense costs
-Expenses incurred in the investigation of a claim
-Premiums for certain types of bonds (bail, appeal, release of attachment
bonds)
-First Aid to others at the time of an accident
-Reasonable Expenses incurred by the insured at the company's request in
the investigation/defense of a claim
-loss of earnings
-Prejudgment interest (miss work for court appearances)
-Postjudgment interest (interest accruing on judgement after an award has
been made, but before payment) - -Supplementary payments may include:
-_____ costs
-Expenses incurred in the _____ of a claim
-_____ for certain types of bonds (bail, appeal, release of attachment bonds)
- _____ _____ to others at the time of an accident
- _____ _____ incurred by the insured at the company's request in the
investigation/defense of a claim
-loss of _____
-_____ interest (miss work for court appearance)
