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RMI Test 2 Chapters Covered In Textbook: Partial Chapter 7: The Liability Risk Chapter 8: Homeowners Insurance, Section IChapter 9: Homeowners Insurance, Section IIChapter 10: Automobile InsuranceChapter 11: Automobile Insurance and SocietyStarts at Topic 4 : Property and Liability Risks on BlackboardTypes of Law- Common law - Laws developed through cases; as judges handle law over time- Statutory Law deals with statutes – local, state, etc.Branches of Law-Criminal – infractions of an individual in regards with society - example: assault – not acceptable behavior in a society- Civil – interactions between two individuals o Contracto Tort – governs relationship between people who don’t have a contractbetween each other but some form of injury has occurred hereBasic Tort Liability Rules- No liability- Negligence- Intentional Torts- Strict Liability- Absolute LiabilityLegal Liability from Negligence- All of the following must occur prudent man rule – courts decide who was or wasn’t negligent; prudent man rule, what a reasonable person would have donegiven the circumstanceso There was a dutyo There was negligence (failure to perform)o Actual damage or loss bodily injury, property damage, personal injury (reputation, slander, impede ability to earn income) Special damage – measurable – how much time did you miss at work; how much were the medical bills General damage – intangible losses – back pain, loss of relationship with loved one Punitive damages – punishment part – punish the person who was negligent so that they won’t do it again- Collateral source rule – damages should not be reduced just because you have other means of collection (i.e. health insuranceo Negligence caused the damage – unbroken chain of events; must prove that uninterrupted chain of events stemming from negligence that caused the eventDefenses to Negligence- Assumption of risk – you knowingly take on a risk (ride rollercoasters, sky diving, drive a car, etc.) and you’re assuming that risk- Negligence on the part of the Injured Partyo Contributory – contributing to accidents; o Comparative – who is more at fault; 95% Nyce fault vs. 5% your fault – percentage of how much you pay in proportion to what you contributed to the accident Some states practice that if 49.5% of fault – can’t collect; 50% you can still collect or no one can collect- Immunity – Examples: Diplomatic Immunity, Charity Immunity- Last Clear Chance – last attempt to avoid an accident/act of negligence; if the opportunity presents itself – example: if you see a motorcyclist avoiding traffic by cutting through the shoulder curb, you can see the motorist coming and you have the last chance to avoid hitting the driver by waiting to open your doorAdditional Types of Liability- Vicarious not directly involved in but you are related to ito Parents and children, employers and employees, lease and sublease- Joint and Several multiple parties that are responsible for the damages but only one of them has to pay o Asbestos – (insulator, fire resistant) when fibers get into the air; carcinogenic and causes cancer in air borne – most of the companies who manufactured them went out of business but those cases that still come up sew contractors, installers, whomever has “deep pockets” and has 1% of fault must pay 100%Specific Types of Liability- Property ownerso Trespassers can’t set a trap for trespassers or deliberately injury trespasserso Licensee mailman, delivery man, etc. – must alert of dangerous conditions ‘Beware of Dog’, ‘Porch boards loose’o Invitee must warn about unsafe conditions and take steps to mitigate unsafe conditionso Attractive Nuisance children; as a property owner you own the highest property of care to; in FL if you have a pool you must have a fence around it- Automobiles not liable for other’s misuse of your car unless you knowingly know the car has defects; owner of the car’s insurance is primary- Employer-employee acting within the scope of employer - Parents and children – when parents are liable for children’s behavior when they gain access to dangerous weapon; operating family vehicle; child acting asthe agent of the parent – older sibling taking over parenting role over young sibling; if your child willfully or maliciously destroys property- Corporationso Employment Practices based on how they do things within the scope of employment – improperly hiring and firing people; discriminating for race, sex, religion; harassment; proper incentives, background checkso Pollution – toxic waste, air quality, water quality – environmental issueso Directors and Officers – hurting or harming shareholderso Workers compensationo Auto liabilityo Premises – responsible for injuries that occur hereo Products liability – i.e. pharmaceutical risks – don’t have to prove negligence, just have to prove that it was unsafe o Dangerous animalsProblems with Tort Liability increase of class action sets in the United States- Increase number of lawsuits- Uncertainty of legal outcomes- Increase compensation awards- Long time delays- Costly and inefficientPossible Changes- Alternative dispute resolution before you end up in front of a judge, go through mediation and try to negotiate settlement ahead of time – [dispute resolution] try and settle through other means- Removal of joint and several - No contingent fees attorneys- Limit non-economic damage eliminate paying (or paying as much as) for pain and suffering because they aren’t measurable- Structure settlements- Changes in punitive damages awarded by jury to injured party – punitive damage awards collected to other organizations – not injured parties – to help promote other changes.Insurance to Handle Liability broad general understanding that will be tested; understand how corporations will handle liability - CGL most common for commercial; wide range for most types of businesses- WC- Commercial Auto- Commercial Umbrella- Liquor- Pollution- D&O- E&OCGL- What is covered? Bodily injury, personal injury (pain and suffering) advertising (protection for having harmed competitor), and medical payments (provide payments for medical payments regardless who is at fault; helps avoidlawsuits) – doesn’t cover liquor license (require liquor liabilities)- Types of coverage five different types of liability coverage;o Premises and operations (individuals who come onto your premise; where


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FSU RMI 3011 - Test 2 Chapters Covered In Textbook

Documents in this Course
Risk

Risk

26 pages

Exam #2

Exam #2

7 pages

Exam #2

Exam #2

7 pages

Exam #3

Exam #3

9 pages

Exam #3

Exam #3

9 pages

Exam 1

Exam 1

12 pages

EXAM 1

EXAM 1

13 pages

Exam 1

Exam 1

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Test 2

Test 2

13 pages

Test 1

Test 1

6 pages

Chapter 1

Chapter 1

56 pages

Test 2

Test 2

22 pages

Test 1

Test 1

5 pages

TEST 2

TEST 2

16 pages

Chapter 1

Chapter 1

56 pages

Notes

Notes

18 pages

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