RMI Test 2 Chapters Covered In Textbook Partial Chapter 7 The Liability Risk Chapter 8 Homeowners Insurance Section I Chapter 9 Homeowners Insurance Section II Chapter 10 Automobile Insurance Chapter 11 Automobile Insurance and Society Starts at Topic 4 Property and Liability Risks on Blackboard Types of Law Branches of Law Common law Laws developed through cases as judges handle law over time Statutory Law deals with statutes local state etc Criminal infractions of an individual in regards with society example assault not acceptable behavior in a society Civil interactions between two individuals o Contract o Tort governs relationship between people who don t have a contract between each other but some form of injury has occurred here Basic Tort Liability Rules No liability Negligence Intentional Torts Strict Liability Absolute Liability Legal 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 done given the circumstances o There was a duty o 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 insurance o Negligence caused the damage unbroken chain of events must prove that uninterrupted chain of events stemming from negligence that caused the event Defenses 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 Party o 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 door Additional Types of Liability Vicarious not directly involved in but you are related to it o 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 owners trespassers o Trespassers can t set a trap for trespassers or deliberately injury o 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 conditions o 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 as the agent of the parent older sibling taking over parenting role over young sibling if your child willfully or maliciously destroys property Corporations o 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 checks o Pollution toxic waste air quality water quality environmental issues o Directors and Officers hurting or harming shareholders o Workers compensation o Auto liability o Premises responsible for injuries that occur here o Products liability i e pharmaceutical risks don t have to prove negligence just have to prove that it was unsafe Problems with Tort Liability increase of class action sets in the United States o Dangerous animals Increase number of lawsuits Uncertainty of legal outcomes Increase compensation awards Long time delays Costly and inefficient Possible 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 O CGL 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 avoid lawsuits 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 you re doing your operations like slip and fall o Products liability example of strict liability only need to prove its inherently or strictly dangerous o Completed operations performing or building work else like building a deck o Contractual liability o Contingent liability you re a business that hires independent contractors
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