Card Set Information
What are the seven tests that determine if an emplyment relationship exists?
1. the degree of control enforceable under the agreement.
2. the type of occupation
3. the required occupational skill
4. the duration of the agreement
5. the method of payment - by time or output
6. who supplies the tools, material, and workplace; and
7. whether the function is central or peripheral to the hiring party
note that the essential element of the employment relationship is the employers right to control his employees time and activities.
What does an independent contractor do?
he performs tasks for the party who hired him to achieve a goal.
What does an employee do?
He peforms tasks for his employer who has the right to control the method his employee uses to accomplish the task.
Unlike an agent, an employee can not contractually bind his employers.
How is employer and employee vicarious liability determined?
It is the principal/employer's right to direct and control his agent / employee that generates the employer's vicarious liability.
An employer is not liabile for an independ contractor's tort unless
1. the employer negligently chose the contracor or gave inadequate work directions.
2. the employer tried to delegate a nondelegable duty to the contractor
3. the contract required inherently dangerous activities, such as blasting
Who are insurance producers and what are they classifications of producers?
Insurance producers may be agents or brokers. The types of producers are:
1. General agents who sell property-causalty insurance
2. special agents who have nly the powers specified in their agency contracts.
3. solicitating agents are subagents of general agents or life-health principal
4. subagents are agents of both their appointing agent and that agent's principal
5. brokers are the insurd's agents authorized to procure their insurance.
A producer's autority may be
1. actual authority inentaionally created by the insurer (principal)
2. apparent authority created by estopple
3. authority created by ratification.
A Producer may be liable to an insured for what?
1. exercise resonable care.
2. follow the customer's clear instructions
3. obtain the correct insurance coverage
4. maintain coverage
5. place insurance with a solvent insurer
6. adequatly advise a customer.
A producer may be liable to an insurer for loss caused by
1. failure to disclose material risks
2. failure to follow instructions
3. action beyond th scope of his authority
4. failure to keep proper accounting
5. failure to transmit information promptly.
What are errors and omissions coverage for producers?
E & ) coverage pays the cost of defense and indemnifies producers for financial loss resulting from claims of professional negligence.
When is a claims representative liable to an insurer?
1. failure to fllow instructions
2. failure to comply with the law.
3. failure to provide prompt, professional service
Under the uniform claims settlement practices act, insurers may not do what?
1. misrepresent coverage provisions
2. fail to act promptly on communications
3. fail to adopt resonable standards to investigate claims
4. reguse to pay claims without a reasonable investigation
5. fail to affirm or deny coverage within a resonable time
6. low ball to force claimants to litigate claims
8. ateempt to force settements for less than would be reasonable expected from applicaton materials
9. attempt to settle based onaan altered application
10. make payments without stating the coverage applied
11. consistently appeal arbitration awards in order to force claimants to accept less than the arbitration amounts.
2. delay their investigations
13. fail to settle claims with clear liability under one coverage in order to induce settlement under another coverage.
14. fail to prove a prompt explantion of denial of liability
15. fail to adopt standards to assure workman lik repairs.
The six basic systems of government are:
1. democratic rule
2. Junta - military government
3. Monarchy - government with a heredity head of state.
a. absolute monarchy - leader rules alone with help from advisers
b. constitutional monarchy - a parliment governs the country and the monarch has ceremonial powers
4. Single-party government
5. theocratic government
6. transitional government
The three subsystems of the civil-law traditon are:
1. Roman - French law - uses a written legal code with a magistrate who acts as the final arbiter of private law disputes; the court relies heavilyty on apponted experts who investigat ethe evidence.
2. German law - uses a legal code designed for interpretation by technical legal bureaucrats.
3. Scandinavian Nordic law - uses a long-established body of customary law.
Other legal systems are:
1. Far eastern law - relies on local customary law and confucianism, with an emphasis on compromise rather than on individual rights.
2. Hindu law - relies on the philopphical precepts of Hinduism
3. Islamic law - used the Koran as the foundation for its leagal system; society must adapt to the law rather than create laws that reflect society.
4. Socialist - communist law - does not recongnize tort or contract law because the state owns most means of production.