AIC 302 DEFINITIONS || ALL CORRECT.
First-party claim correct answers A demand by an insured person or organization seeking to
recover from its insurer for a loss that its insurance policy
may cover.
Third-party claim correct answers A demand against an insured by a person or organization
other than the insured or the insurer, seeking to recover
damages that may be payable by the insured's liability
insurance.
Negligence correct answers The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid
harming others.
Proximate cause correct answers A cause that, in a natural and continuous sequence
unbroken by any new and independent cause, produces
an event and without which the event would not have
happened.
Dram shop act correct answers A statute holding establishments that serve alcoholic
beverages responsible for harm that results from serving
patrons alcohol in violation of the statute.
Negligent entrustment correct answers The act of leaving a dangerous article with a person who
the lender knows, or should know, is likely to use it in an
unreasonably risky manner.
Negligence per se correct answers An act that is considered inherently negligent because of a
violation of a law or an ordinance
Vicarious liability correct answers A legal responsibility that occurs when one party is held
liable for the actions of a subordinate or an associate
because of the relationship between the two parties.
Agent correct answers In the agency relationship, the party that is authorized by
the principal to act on the principal's behalf.
Principal correct answers The party in an agency relationship that authorizes the
agent to act on that party's behalf.
Rescue doctrine correct answers A legal doctrine providing that a party causing an accident
can be liable to any people involved in rescue efforts as a
result of the accident.
Joint and several
, liability correct answers The liability of multiple defendants either collectively
or individually for the entire amount of damages sought
by the plaintiff regardless of their relative degree of
responsibility.
Tortfeasor correct answers A person or an organization that has committed a tort.
Successive tortfeasors correct answers Parties whose independent acts do not produce a single
event but unite to cause a single injury that can be easily
apportioned among the wrongdoers.
Bailee correct answers The party temporarily possessing the personal property in
a bailment.
Bailor correct answers The owner of the personal property in a bailment.
Compensatory damages correct answers A payment awarded by a court to reimburse a victim for
actual harm.
Punitive damages (exemplary damages) correct answers A payment awarded by a court to punish
a defendant
for a reckless, malicious, or deceitful act to deter similar
conduct; the award need not bear any relation to a party's
actual damages.
Uninsured motor vehicle correct answers A land motor vehicle or trailer that is not insured for
bodily injury liability, is insured for less than the financial
responsibility limits, is a hit-and-run vehicle, or whose
insurer denies coverage or becomes insolvent.
Split-limits basis correct answers Separate coverage limits that allow one limit for bodily
injury to each person; a second, usually higher, limit for
bodily injury to all persons in each accident; and a third
limit for all property damage in each accident.
Single-limits basis correct answers One coverage limit that applies to all damages arising
from bodily injury or property damage or both, resulting
from a single accident.
Arbitration correct answers An alternative dispute resolution (ADR) method by
which disputing parties use a neutral outside party to
examine the issues and develop a settlement, which can be
final and binding.
Personal loss exposure correct answers Any condition or situation that presents the possibility of
a financial loss to an individual or a family by such causes
First-party claim correct answers A demand by an insured person or organization seeking to
recover from its insurer for a loss that its insurance policy
may cover.
Third-party claim correct answers A demand against an insured by a person or organization
other than the insured or the insurer, seeking to recover
damages that may be payable by the insured's liability
insurance.
Negligence correct answers The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid
harming others.
Proximate cause correct answers A cause that, in a natural and continuous sequence
unbroken by any new and independent cause, produces
an event and without which the event would not have
happened.
Dram shop act correct answers A statute holding establishments that serve alcoholic
beverages responsible for harm that results from serving
patrons alcohol in violation of the statute.
Negligent entrustment correct answers The act of leaving a dangerous article with a person who
the lender knows, or should know, is likely to use it in an
unreasonably risky manner.
Negligence per se correct answers An act that is considered inherently negligent because of a
violation of a law or an ordinance
Vicarious liability correct answers A legal responsibility that occurs when one party is held
liable for the actions of a subordinate or an associate
because of the relationship between the two parties.
Agent correct answers In the agency relationship, the party that is authorized by
the principal to act on the principal's behalf.
Principal correct answers The party in an agency relationship that authorizes the
agent to act on that party's behalf.
Rescue doctrine correct answers A legal doctrine providing that a party causing an accident
can be liable to any people involved in rescue efforts as a
result of the accident.
Joint and several
, liability correct answers The liability of multiple defendants either collectively
or individually for the entire amount of damages sought
by the plaintiff regardless of their relative degree of
responsibility.
Tortfeasor correct answers A person or an organization that has committed a tort.
Successive tortfeasors correct answers Parties whose independent acts do not produce a single
event but unite to cause a single injury that can be easily
apportioned among the wrongdoers.
Bailee correct answers The party temporarily possessing the personal property in
a bailment.
Bailor correct answers The owner of the personal property in a bailment.
Compensatory damages correct answers A payment awarded by a court to reimburse a victim for
actual harm.
Punitive damages (exemplary damages) correct answers A payment awarded by a court to punish
a defendant
for a reckless, malicious, or deceitful act to deter similar
conduct; the award need not bear any relation to a party's
actual damages.
Uninsured motor vehicle correct answers A land motor vehicle or trailer that is not insured for
bodily injury liability, is insured for less than the financial
responsibility limits, is a hit-and-run vehicle, or whose
insurer denies coverage or becomes insolvent.
Split-limits basis correct answers Separate coverage limits that allow one limit for bodily
injury to each person; a second, usually higher, limit for
bodily injury to all persons in each accident; and a third
limit for all property damage in each accident.
Single-limits basis correct answers One coverage limit that applies to all damages arising
from bodily injury or property damage or both, resulting
from a single accident.
Arbitration correct answers An alternative dispute resolution (ADR) method by
which disputing parties use a neutral outside party to
examine the issues and develop a settlement, which can be
final and binding.
Personal loss exposure correct answers Any condition or situation that presents the possibility of
a financial loss to an individual or a family by such causes
