1. Casualty

2. Tort

3. Negligence

4. To establish Negligence 4 factors must be involved

1. pays the "other guy" 3rd party losses

2. Civil wrong that causes someone else to suffer loss

3. failure to act or not act reasonable

4. 1) Legal duty owed

2) Breach of legal duty owed

3) Proximate cause

4) Damages

Defense against a claim of negligence by another

1. Contributory

2. Comparative

3. Assumption of Risk

4. Intervening Cause

5. Statute of Limitations

6. Last Clear Chance

7. Absolute/Strict

8. Product Defects

1. : person contributed to own damages (Not in Texas)

2. finding of liability when both parties contributed

3. assumed responsibility

4. independent events effects the chain of events

5. certain types of lawsuits filed within a specified amount of time

6. last opportunity to avoid accident

7. Liability without negligence

8. swimming pools, vicious animals, loaded fire arms, demolitions of building

Vicarious Liability

Types of Damages: Compensatory Damages:

1. Special damages

2. general damages

Punitive Damages

liability for the actions of another (children under age, employees)

1. (limited tort) provable monetary losses

2. (full tort) non-monetary losses

Gross Negligence

Insurance company doesn't pay for punitive damages

If court feels that an individual acted willfully in causing an injured party's damages, it may award punitive damages to the injured party

Purpose of Liability Insurance

Liability/Limits of Liability

Liablity                                           Limits of Liability

Bodily injury (BI)                             Split (BI & PD)

Property Damage (PD)                     Combined Single

Medical                                           Per Person

Supplementary Payments                 Aggregate

                (BAILED)                

Bonds

Aid

Interest on Judgement

Lost wages ($250/day)

Expenses

Defense Cost

*Supplementary payments are paid in addition to the policy's limit of liability

Duties after a loss

Liability Policy Exclusions

Duties after a loss:

Notify Company promptly

Forward notices

Assist the company

Don't assume liablity

Liability Policy Exclusions:

Damage to property of an insured

Bodily injury to an employee

Nuclear energy liability

Intentional damage caused by the insured