Commercial Casualty I: Questions With Insightful
Solutions
Liability Right Ans - the state of being bound or obligated in law or justice
to do, pay, or make good something; legal responsibility
Common Law Right Ans - the set of legal rules used in the United States to
resolve civil - not criminal - disputes in courts
Preponderance of evidence standard Right Ans - where the judge or jury
considers the weight of the testimony of witnesses along with evidence to
determine what is likely the truth
Willingness to settle Right Ans - trials and lawyers cost a lot of money, size
of the claim may be less than the cost to fight it out in court, how the jurors
may perceive the witness during trial, also considering the jurisdiction
Premises Liability Right Ans - applies to the specific locations such as an
office building, a store, a warehouse, or a manufacturing facility (may also
include the insured's parking area, sidewalks, paths leading up to the
insured's office).
Operations Right Ans - Those exposures that typically occur away from the
premise of the business - can be caused by activities such as construction,
processing, or providing services on someone else's property.
Products Right Ans - Caused by defects in product design, manufacturing,
or the failure to sufficiently warn or explain the safe use of the product to
consumers - an exposure can exist if any product - when it is being used as
intended by the customer - breaks or fails in some manner and causes injury
or damage.
Completed Operations Right Ans - Arises out of the injury and/or damage
caused by defective or improper workmanship, after the work has been
completed - any company that installs, builds, services, or repairs things has
this exposure.
,Ownership, Maintenance, or Use of Autos Right Ans - Can arise out of injury
and/or damage due to the ownership, maintenance, or use of an auto
(example is an employee causes an accident while driving the company car,
the business that owns that vehicle can be held responsible for any damages,
as can the driver).
Ownership, Maintenance, or Use of Other Conveyances Right Ans -
Conveyance liability will vary from business to business, as the means of
transport and the items to be transported fall under various regulations and
restrictions - primary concern is the damage or injury that can be caused by
negligent operations.
Employment Right Ans - Subject to laws and regulations governing injury
to workers - employees in any businesses regularly suffer bodily injury during
the scope of their employment - also includes exposures other than just
physical injury.
Liquor Right Ans - Will vary from state to state as it is subject to differences
in statutes and how a business operates - not limited to just places that sell
and serve alcohol.
Environmental Impairment Right Ans - Occurs when the operations or
products of a business cause environmental harm - pollutants can be
practically any material that is not where it is supposed to be - it is possible
for a business to be responsible for environmental impairment regardless of
how benign their operations may seem.
Professional Right Ans - Will vary depending on the nature of the business
and the state(s) in which operations are conducted.
Bailee Right Ans - Exists as a direct result of possessing another's property
(example is a jeweler).
Cyber Liability Right Ans - Also mentioned is cyber liability.
Legal Liability Right Ans - The responsibility that a business has for any
harm that they may cause towards another entity.
, Liability Trigger Right Ans - An occurrence or accident that causes a tort or
civil wrong - it is an event in which someone is either injured or property is
damaged because of the actions or inactions of another party.
Direct Liability Right Ans - Occurs as a result of one's own conduct. (i.e. a
landscaping contractor can be directly liable for their employee's hearing loss
if they fail to provide their crew with appropriate safety equipment).
Vicarious Liability Right Ans - The liability of one party based upon the
liability of another - liability is said to be imputed (transferred from one party
to the other). Many times, the person or organization is not actively involved
in the conduct that causes injury or damage and in fact, may have actually
discouraged it or tried to prevent it.
Vicarious Liability Risk Right Ans - Vicarious liability is an everyday risk
for all businesses - while many business owners assume that hiring an outside
vendor or contractor absolves them of responsibility for their own actions, it
is nearly impossible to ward off all liability, regardless of the type.
Employer/Employee Relationship Right Ans - Legal doctrine has held that
the employer is responsible for injury or damage to another resulting from
acts of an employee committed within the scope of their employment.
Liability Right Ans - The state of being bound or obliged in law or justice to
do, pay, or make good something; legal responsibility.
Principal/Agent Right Ans - Similar to an employer/employee relationship,
but the principal is liable only for acts of the agent while the agent is
performing acts directly related to the relationship.
Owner/Manager Right Ans - A property manager could be legally liable for
the acts or omissions of its management company; the owner can be liable
only for acts performed by the manager that are directly related to the
relationship.
Owner/Contractor-Contractor/Subcontractor Right Ans - An
owner/contractor may be held liable for the acts of its
contractor/subcontractor; however, generally, the owner/contractor is not
legally liable for the conduct of a subcontractor unless the subcontractor is
Solutions
Liability Right Ans - the state of being bound or obligated in law or justice
to do, pay, or make good something; legal responsibility
Common Law Right Ans - the set of legal rules used in the United States to
resolve civil - not criminal - disputes in courts
Preponderance of evidence standard Right Ans - where the judge or jury
considers the weight of the testimony of witnesses along with evidence to
determine what is likely the truth
Willingness to settle Right Ans - trials and lawyers cost a lot of money, size
of the claim may be less than the cost to fight it out in court, how the jurors
may perceive the witness during trial, also considering the jurisdiction
Premises Liability Right Ans - applies to the specific locations such as an
office building, a store, a warehouse, or a manufacturing facility (may also
include the insured's parking area, sidewalks, paths leading up to the
insured's office).
Operations Right Ans - Those exposures that typically occur away from the
premise of the business - can be caused by activities such as construction,
processing, or providing services on someone else's property.
Products Right Ans - Caused by defects in product design, manufacturing,
or the failure to sufficiently warn or explain the safe use of the product to
consumers - an exposure can exist if any product - when it is being used as
intended by the customer - breaks or fails in some manner and causes injury
or damage.
Completed Operations Right Ans - Arises out of the injury and/or damage
caused by defective or improper workmanship, after the work has been
completed - any company that installs, builds, services, or repairs things has
this exposure.
,Ownership, Maintenance, or Use of Autos Right Ans - Can arise out of injury
and/or damage due to the ownership, maintenance, or use of an auto
(example is an employee causes an accident while driving the company car,
the business that owns that vehicle can be held responsible for any damages,
as can the driver).
Ownership, Maintenance, or Use of Other Conveyances Right Ans -
Conveyance liability will vary from business to business, as the means of
transport and the items to be transported fall under various regulations and
restrictions - primary concern is the damage or injury that can be caused by
negligent operations.
Employment Right Ans - Subject to laws and regulations governing injury
to workers - employees in any businesses regularly suffer bodily injury during
the scope of their employment - also includes exposures other than just
physical injury.
Liquor Right Ans - Will vary from state to state as it is subject to differences
in statutes and how a business operates - not limited to just places that sell
and serve alcohol.
Environmental Impairment Right Ans - Occurs when the operations or
products of a business cause environmental harm - pollutants can be
practically any material that is not where it is supposed to be - it is possible
for a business to be responsible for environmental impairment regardless of
how benign their operations may seem.
Professional Right Ans - Will vary depending on the nature of the business
and the state(s) in which operations are conducted.
Bailee Right Ans - Exists as a direct result of possessing another's property
(example is a jeweler).
Cyber Liability Right Ans - Also mentioned is cyber liability.
Legal Liability Right Ans - The responsibility that a business has for any
harm that they may cause towards another entity.
, Liability Trigger Right Ans - An occurrence or accident that causes a tort or
civil wrong - it is an event in which someone is either injured or property is
damaged because of the actions or inactions of another party.
Direct Liability Right Ans - Occurs as a result of one's own conduct. (i.e. a
landscaping contractor can be directly liable for their employee's hearing loss
if they fail to provide their crew with appropriate safety equipment).
Vicarious Liability Right Ans - The liability of one party based upon the
liability of another - liability is said to be imputed (transferred from one party
to the other). Many times, the person or organization is not actively involved
in the conduct that causes injury or damage and in fact, may have actually
discouraged it or tried to prevent it.
Vicarious Liability Risk Right Ans - Vicarious liability is an everyday risk
for all businesses - while many business owners assume that hiring an outside
vendor or contractor absolves them of responsibility for their own actions, it
is nearly impossible to ward off all liability, regardless of the type.
Employer/Employee Relationship Right Ans - Legal doctrine has held that
the employer is responsible for injury or damage to another resulting from
acts of an employee committed within the scope of their employment.
Liability Right Ans - The state of being bound or obliged in law or justice to
do, pay, or make good something; legal responsibility.
Principal/Agent Right Ans - Similar to an employer/employee relationship,
but the principal is liable only for acts of the agent while the agent is
performing acts directly related to the relationship.
Owner/Manager Right Ans - A property manager could be legally liable for
the acts or omissions of its management company; the owner can be liable
only for acts performed by the manager that are directly related to the
relationship.
Owner/Contractor-Contractor/Subcontractor Right Ans - An
owner/contractor may be held liable for the acts of its
contractor/subcontractor; however, generally, the owner/contractor is not
legally liable for the conduct of a subcontractor unless the subcontractor is
