topic 9 mccloskey

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topic 9 mccloskey
2014-12-10 22:46:29
Mccloskey final exam

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  1. What does legal liability stem from?
    the law of torts,contracts or statutes.
  2. A private wrong is called a_______.
  3. violation of a person's rights by another would fall under the_______________.
    law of torts
  4. true/false torts can lead to civil action
  5. torts are commonly classified as either:(2)
    intentional or unintentional
  6. Intentional tort(examples)
    assault, libel, slander
  7. Unintentional tort(examples)
    negligence or carelessness
  8. What is the most common cause of legal liability?
  9. Legal liability is established when:(4)
    • There was negligence
    • there was actual damage or loss
    • the negligence was the cause of loss
    • the person injured was free from fault
  10. What constitutes negligence?
    • failure of a person to exercise the proper degree of care
    • burden of proof is on the injured party
  11. In a negligence case, who has the burden of proof
    the injured party
  12. absolute/strict liability(4)
    • legal liability is established because accidents happen
    • imposed whether anyone was at fault(especially ultra hazardous activities)
    • can occur due to statute
  13. In_______ legal liability is established because accidents happen
    Absolute/strict liability
  14. _______is imposed whether anyone was at fault (especially ultra hazardous activities)
    Absolute/strict liability
  15. ____ can occur due to a statute
    Absolute/strict liability
  16. How are compensatory damages paid?
    they are paid to compensate injured party for the harm caused to them.
  17. punitive damages
    punish defendants whose conduct is questionable or those found guilty of gross negligence.
  18. Liability types(7)(very important to know all 7)
    • vicarious
    • premises
    • operations
    • joint and several
    • product
    • liquor
    • general
  19. operations liability
    • operations conducted away from premises
    • uncompleted work
    • aka operations in progress
  20. common physical hazards that may result in operations liability
    slip and fall type claims caused by (uneven stairs, poor lighting, poor housekeeping,unsafe areas)
  21. special operations liability
    • more unique to a certain type of business class
    • (chemicals,dust, explosives, heavy material)
  22. uneven stairs, poor lighting, poor housekeeping, and unsafe areas are ___(1)___hazards that may cause ____(2)_______.
    • 1. physical
    • 2. operations liability
  23. chemicals, dust, explosives, and heavy material are a ____(1)______form of ____(2)______liability.
    • 1.special
    • 2. operations
  24. T/F claims usually include a condition allowing the insurer to settle out of court without the policyholders consent.
  25. ________usually include a condition allowing the insurer to settle out of court without the policyholders consent.
  26. when underwriting__________ is given to whether defense costs are to be included.
  27. other factors in legal liability for claims include:
    accounting scandals, market trends, job markets and local conditions
  28. what type of doctors are considered to be at high risk for medical malpractice?
    specialists- anesthesiologists, neurosurgeons, OB-GYN's
  29. considerations in underwriting professional liability(4)
    years in practice, education, professional reputation, and claims history
  30. _______ usually represents a higher risk in other areas as well(not just doctors)
    specialty(aka lawyers, accountants and insurance agents)
  31. Individuals and families are usually covered under which policies?
    homeowners, tenants, and umbrella policies
  32. What does underwriting personal liability arise from
    • premises liability, operating a vehicle, living life etc.
    • non business activities
  33. attractive nuisance
    items that attract children onto premises
  34. Things that factor into underwriting premises liability)(4)
    • attractive nuisances 
    • uneven sidewalks
    • poorly lighted properties
  35. why don't insurers often spend much money on inspection of properties for premises liability
    premium is low(not worth the time)
  36. Instead of inspecting properties for premises liability, how do insurers get info on property?
    ask questions or get pictures
  37. Things insurers look for when underwriting premises liability(6)
    • vicious dogs
    • swimming pools
    • trampoline
    • hot tub
    • property being renovated
    • any part of the premises rented to others
  38. personal activities that may cause liability(4)
    • children causing damages
    • unlicensed recreational vehicles
    • completed operations(food)
    • sports liability
  39. what is clue?
    • comprehensive loss underwriting exchange
    •  that gives insurers a 5 yr history of property claims(kind of like car fax)
  40. percentage of insurers that participate in clue?
  41. other underwriting tools
    • clue
    • credit scores
  42. main things taken into account for auto insurance underwriting(2)
    • age of operator
    • age and type of vehicle
  43. How does the age of a driver come into play when underwriting auto?
    • under 25 high risk
    • over 55 higher risk
  44. reasons why insurers look at age and type of vehicle when underwriting auto?(3)
    • older cars might have mechanical issues
    • auto type- sports car vs station wagon vs sedan
    • cost of parts and repairs
  45. things taken into consideration for auto insurance underwriting(6)
    • auto use
    • driving record
    • location
    • gender and marital status
    • age of operator
    • age and type of vehicle
  46. Types of auto usage considered by insurers
    • Pleasure use
    • drive to work(3-10 miles)
    • drive to work(over 10 miles)
    • business use
  47. what do insurers look at when looking at driving records of insureds
    • accidents
    • moving violations
    • driving habits indicate lack of skill
  48. Location factors that affect auto insurance premiums.
    • rural vs urban
    • pop density
    • winter or rainy weather
  49. Gender and marital status factors that affect auto premiums
    • Female drivers safer at younger ages
    • married males under 30 see less accidents
  50. What is the difference between underwriting commercial and personal auto?
    • same, except there are some additional considerations including:
    • vehicle weight and vehicle use
  51. why does vehicle weight matter?
    damage is greater with heavier vehicles
  52. types of commercial vehicle use
    • service
    • retail
    • commercial
  53. vehicle use: (service)
    driven to job site and sit until the end of the day
  54. vehicle use:(retail)
    delivery to households and pickups
  55. vehicle use: (commercial)
    anything that does not fall into service or retail.
  56. Examples of on premises hazards(2)
    • housekeeping
    • maintenance
  57. housekeeping
    physical layout of a facility in that particular line of business
  58. maintenance
    good history of plant and machine maintenance is a good sign of safety.
  59. unsafe acts cause______ of accidents
    88 percent
  60. unsafe acts are caused by:
    • employees not following protocol or procedure
    • they are difficult to identify
    • and behavior influence are needed to manage them
  61. Unsafe acts are______ to identify
  62. Which is easier to identify unsafe conditions or unsafe acts?
    Unsafe conditions
  63. examples of unsafe conditions
    office vs factory
  64. off premises hazards(5)
    • work travel
    • travel duration
    • mode of transportation
    • hazards at remote job sites
    • traveling with large amounts of employees(sometimes in a corporate jet)
  65. management attitude(in wc underwriting)
    • safety program
    • good leadership/mgmt
    • ee morale
    • company support
    • willingness to investigate and fight fraud
  66. occupational disease
    Disease that workers are exposed to or face that they would not normally in the general public
  67. examples of occupational disease
    exposure to asbestos, toxic dust, radiations etc.
  68. What is the problem with underwriting wc for occupational disease?
    it is difficult to identify and estimate cost(as opposed to an accident
  69. What does OSHA stand for?
    occupational health and safety act
  70. what does osha require er's to do?
    • have government safety inspections
    • ers must keep work premises safe for ees 
    • also must follow set safety regulations
  71. Residual markets(4)
    • employers are unable to obtain them privately
    • state plans
    • joined uw associations
    • assigned risk pools
  72. What do umbrella policies cover?
    large, low frequency losses
  73. ______ does not usually provide primary insurance
    umbrella policies
  74. Provides excess above liability limits on an underlying policy
  75. What happens to an umbrella policy if underlying limits are not maintained
    the umbrella will still only respond as if those limits are in place
  76. who commonly purchases an umbrella policy?
    high net worth individuals and businesses
  77. excess policies
    • Increases the limits of liability on an underlying policy
    • does not broaden coverage(unlike umbrella)
    • severity not frequency is the issue
  78. In this type of policy, often the individual case is not underwritten, but broad considerations like catastrophe exposures are considered
    excess policies
  79. in excess policies________ is the main issue
  80. _______increases the limits of liability on an underlying policy.
    excess policies