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Bu353 Risk Management Final Exam – Areas of Concentration

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BU 353 Winter 2013 Final Exam – Areas of Concentration

Chapter 10 Liability
Types of law:
2 main types: Common law: through previous court decisions Statutory law: written by governing bodies
Branches of law: Criminal law: codified in the criminal code, for those who act against this Civil (contract and tort): acts that causes losses to another individual/entity -Contract: disputes between obligated contractual parties -Tort: wrongs doings (intentional or not) to one party enacted by another -No liability: not liable, due to lack of consciousness, 2. Breached this duty of care, 3. Caused damages. -Strict liability: liable without being negligent, i.e. faulty products -Absolute liability: conduct caused damage

Types of damages:
-Compensatory Damages: compensate injured parties for damages -Special damages: monetary losses: medical exp, lost wages, repair, etc. -General damages: nonmonetary losses like emotional distress precedence
-Punitive Damages: punish or deter the defendant, most liability coverages doesn’t cover this
-Joint and Several Liability: many defendants causing loss. Plantiff can collect damages only once but can choose who to go after which is better since they can choose one with most money
Elements of negligence:
1. Duty of Care/ Standard of care
2. Breach of duty would a normal responsible person do this?
3. Breach is proximate cause of damage foreseeable
4. Caused damages

How much for safety expenditure? MC<MBenefit

Chapter 11: Automobile Insurance
Major Loss Exposure (11-3)
Legal Liability for Negligently Causing:
Bodily injury to Others – including their economic losses and pain and suffering
Property Damage to Others, including loss of use of the property
Cost incurred to defend any lawsuits against the insured for property damage and/or bodily injury
All…...

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