Property and Liability Insurance Principles Chp8

studentdavid's version from 2017-01-02 18:57

Section 1

Question Answer
FixtureAny personal property attached to real property in such a way as to become part of the real property ex. boiler, refrigerator, stove, etc.
MoneyCurrency, coins, bank notes, checks, credit card slips, and money orders held for sale to the public
SecuritiesWritten instruments representing either money or other property, such as stocks and bonds
AutoAs defined in commercial general liability and auto forms, a land motor vehicle, trailer, or semi trailer designed for travel on public roads, land motor vehicles must be licensed in a state and usually garaged
Mobile Equipment Various types of vehicles designed for use principally off public roads, such as cranes or bulldozers
Recreational VehicleA vehicle used for sports such as a dune buggy, all-terrain vehicle, or dirt bike

Section 2

Question Answer
PerilThe cause of loss
Hazard Anything that increases the frequency or severity of a loss
MortgageeA lender in a mortgage arrangement, such as a bank or financing institution
MortgagorThe person or organization that borrows money from a lender to fund the purchase of real property
Legal LiabilityThe obligation for a party to pay damages(sum of money) to another party
BaileeA party that temporarily possesses(safeguards) personal property that belongs to someone else until the personal property is bought again by an individual. ex. car at a repair shop, clothes in a dry cleaners,

Section 3

Question Answer
Constitutional LawThe constitution itself and the decisions of the Supreme Court that involve the constitution
StatuteA written law passed by a legislative body, at either the federal or state level
Statutory LawThe formal laws, or statutes, enacted by federal, state, or local legislative bodies
Common Law (Case Law)Laws that develop out of court decisions in particular cases and become examples for future cases
Criminal LawThe branch of the law that imposes penalties for wrongs against society
Civil LawLaw that applies to legal matters not governed by criminal law and that protects rights and provides solutions for breaches of duties owed to others

Section 4

Question Answer
TortA wrongful act or negligence, other than a crime or a breach of contract, that invades a legally protected right
Tort LawThe part of civil law that deals with civil wrongs other than breaches of contract
NegligenceThe failure to properly react to a situation and handle it with care
Proximate Causecontinuous sequence of actions not affected by any new and independent cause, which starts an event and without the sequence of actions, the event would not have occurred
TortfeasorA person or organization that has committed a tort
(Secondary)Vicarious LiabilityBecause of the relationship between two parties, one party is held liable for the tort committed by the other party (substitute, associate etc.)

Section 5

Question Answer
Intentional TortAn individual that purposely commits a civil wrong to harm someone
AssaultThe threat of force against another person to create fear of expected harmful contact
BatteryIntentional physical contact to harm another person without legal reasoning
DefamationA false written or oral statement that harms another's reputation
SlanderA insulting statement expressed by speech

Section 6

Question Answer
LibelA insulting statement expressed in writing
False ArrestAn individual being captured without legal authority
Invasion of privacyThe right for an individual to be left alone is disregarded
Strict LiabilityLiability forced by a court or statute (regardless of fault ) to give an injured person the right to recover due to dangerous activities
Hold-harmless agreement(Indemnity agreement)A contractual term that obligates a party to assume legal liability applies to the other party

Section 7

Question Answer
WarrantyA seller's contract representing guaranty of a products success
Statutory liabilityLegal liability applied by specific statute or law
Personnel loss exposureA condition of the possibility of loss due to a person's death, disability, retirement, or resignation and whose knowledge or talent an organization cannot easily replace
Key EmployeeAn employee whose loss to a firm through death or disability before retirement would have economic effects on the company
DisabilityThe inability of a person to meet his or her personal, social, or occupational demands; other activities of daily living; or statutory or other legal requirements

Section 8

Question Answer
Net Income Loss ExposureA condition that presents the possibility of loss caused by a reduction in net income.
OrdinanceLaws made by local government