Insurance chapter 19

Legal wrong

A violation of a person’s legal right, or a failure to perform a legal duty owed to a certain person or to society as a whole

Tort

A legal wrong for which the court allows a remedy in the form of money damages

Strict liability

Liability is imposed

Negligence

The failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm

Proximate cause relationship

Relationship between the negligent act and the infliction of damages, which requires an unbroken chain of events

Compensatory damages

Compensate the victim for losses actually incurred

Special damages

Provide compensation for medical expenses

General damages

Provide compensation for pain and suffering

Punitive damages

designed to punish people and organizations so that others are deterred from committing the same wrongful act

Contributory negligence law

States the injured person cannot collect damages if his or her care falls below the standard of care required for his or protection

Comparative negligence law

States that the financial burden of the injury is shared by both parties according to their respective degrees of fault

Pure rule

You can collect damages even if you are negligent, but your reward is reduced in proportion to your fault

50 percent rule

You cannot recover if you are 50 percent or more at fault

51 percent rule

You cannot recover if you are 51 percent or more at fault

Last clear chance rule

States that a plaintiff who is endangered by his or her own negligence can still recover damages from the defendant if the defendant has a last clear chance to avoid the accident but fails to do so

Assumption of risk doctrine

A person who understands and recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury

Vicarious liability law

A motorist’s negligence is imputed to the vehicle’s owner

Family purpose doctrine

The owner of an auto can be held liable for negligent acts committed by family members

Dram shop law

A business that sells liquor can be held liable for damages that may result from the sale of liquor

Res ipsa loquitur

Under this doctrine, the very fact that the injury or damage occurs establishes a presumption of negligence

Duty of slight care

The duty to refrain from injuring a trespasser

Licensee

A person who enters the premise with the occupant’s expressed or implied permission

Invitee

A person who is invited onto the premises

Attractive nuisance

A hazardous condition that can attract and injure children

doctrine of respondeat superior

An employer can be held liable for the negligent acts of employees while they are acting on the employer’s behalf

Alternative dispute resolution

A technique for resolving a legal dispute using arbitration or mediation

Cyber liability

Refers to the risk that an unauthorized party gains access to an organization’s data