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Loss Ratio Formula - answers(Incurred Losses+Loss Adjusting Expense)/Earned
Premium
Insurable Interest - answersOwnership
Stand to suffer economic loss
Components - answersFactors that determine rates including loss reserves, loss
adjusting expenses, operating expenses, and profits
Hazards - answersPhysical: tangible subject of insurance increasing chance of loss
(exposed wire)
Moral: Dishonest predisposition of IN (defraud insurer)
Morale: IN doesn't care about insured property, carelessness
Elements of Negligent Act - answersLegal Duty
Standard of Care
Proximate Cause
Actual Loss or Damage
Negligence - Legal Duty - answersMust be shown that the defendant had legal duty to
act or not act
Negligence - Standard of Care - answersDefendant must have used a standard of care
that breached legal duty, implies acting as a reasonable person would act
Negligence - Proximate Cause - answersA natural and reasonably foreseeable cause of
the damage that occurs and damages property or injures plaintiff.
An unbroken chain of events beginning w/ the negligence and leading to injury/damage
Negligence - Actual Loss or Damage - answersMere fact that carelessness existed is
not sufficient cause for legal liability - actual injury or damage must have been suffered
by party seeking recovery
Defense Against Negligence - Intentional Tort - answersDeliberate act that causes harm
to another person regardless of intention to injure
Defense Against Negligence - Libel - answersWritten or printed untrue statement that
injures a reputation
Loss Ratio Formula - answers(Incurred Losses+Loss Adjusting Expense)/Earned
Premium
Insurable Interest - answersOwnership
Stand to suffer economic loss
Components - answersFactors that determine rates including loss reserves, loss
adjusting expenses, operating expenses, and profits
Hazards - answersPhysical: tangible subject of insurance increasing chance of loss
(exposed wire)
Moral: Dishonest predisposition of IN (defraud insurer)
Morale: IN doesn't care about insured property, carelessness
Elements of Negligent Act - answersLegal Duty
Standard of Care
Proximate Cause
Actual Loss or Damage
Negligence - Legal Duty - answersMust be shown that the defendant had legal duty to
act or not act
Negligence - Standard of Care - answersDefendant must have used a standard of care
that breached legal duty, implies acting as a reasonable person would act
Negligence - Proximate Cause - answersA natural and reasonably foreseeable cause of
the damage that occurs and damages property or injures plaintiff.
An unbroken chain of events beginning w/ the negligence and leading to injury/damage
Negligence - Actual Loss or Damage - answersMere fact that carelessness existed is
not sufficient cause for legal liability - actual injury or damage must have been suffered
by party seeking recovery
Defense Against Negligence - Intentional Tort - answersDeliberate act that causes harm
to another person regardless of intention to injure
Defense Against Negligence - Libel - answersWritten or printed untrue statement that
injures a reputation
