CIP C13 - CH01 - Introduction to Insurance Liability (Completed) 2024/2025

CIP C13 - CH01 - Introduction to Insurance Liability (Completed) 2024/2025 What word equates to the term "RESPONSIBILITY" as it is used in the insurance business? - Correct Answers - Liability. What are 3 categories used to classify the way in which the law imposes liability? - Correct Answers - Negligence. - Nuisance. - Breach of contract. What is a TORT? - Correct Answers - A civil wrong or injury recognized under the law such as: - Negligence and nuisance, but not a breach of contract. - Whereby an injured party acquires the right to sue the defendant, usually for a court award in the form of compensation. What is NEGLIGENCE? - Correct Answers - The omission to do something which a reasonable person (guided upon those considerations which ordinarily regulate the conduct of human affairs) would do, or doing something which a prudent and reasonable person would not do. - A tort. What is NUISANCE? - Correct Answers - A substantial and unreasonable interference with a person's right to enjoy and use his property. - A tort. What is PRIVATE NUISANCE? - Correct Answers - Interference with a person's right of use and enjoyment of his or her living area. - includes block neighbours What is PUBLIC NUISANCE? - Correct Answers - Interference involving the rights of use and enjoyment of many people. What is a BREACH OF CONTRACT? - Correct Answers - When a party to a contract fails to honor the terms of a contract. - Providing the injured party to the contract with a legal cause of action against the party who failed to perform. - Liability insurance does not apply to breach of contract. Why does our system of CIVIL JUSTICE IMPOSE RESPONSIBILITIES on people? - Correct Answers - Responsibility is imposed on all citizens; individuals and legal entities, as a natural deterrent to irresponsible behavior in both personal and corporate acts. How does a LIABILITY POLICY PROTECT BUSINESSES