Insurance Law, Part I Flashcards Preview

Course 2 Vocab > Insurance Law, Part I > Flashcards

Flashcards in Insurance Law, Part I Deck (85):
1

Tort

A wrongful act or an omission, other than a crime or a breach of contract,
that invades a legally protected right.

2

Jurisdiction

A particular court’s power or authority to decide a lawsuit of a certain
type or within a certain territory.

3

Tortfeasor

A person or organization that has committed a tort.

4

Intentional tort

A tort committed by a person who foresees (or should be able to foresee)
that his or her act will harm another person.

5

Invasion of privacy

An encroachment on another person’s right to be left alone.

6

Negligence

The failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others.

7

Common law (case law)

Laws that develop out of court decisions in particular cases and establish
precedents for future cases.

8

Plaintiff

The person or entity who files a lawsuit and is named as a party.

9

Standing to sue

A party’s right to sue, as one who has suffered or will suffer a legal
wrong or an adverse effect from an action.

10

Defendant

The party in a lawsuit against whom a complaint is filed.

11

Significant contacts rule

Specifies that the substantive law of a state having more significant
contacts to the parties could apply, even when the tort occurred elsewhere.

12

Legal duty

An obligation imposed by law for the preservation of the legally protected
rights of others.

13

Reasonable person test

A standard for the degree of care exercised in a situation that is
measured by what a reasonably cautious person would or would not do
under similar circumstances.

14

Common carriers

Airlines, railroads, or trucking companies that furnish transportation
to any member of the public seeking their offered services.

15

Proximate cause

A cause that, in a natural and continuous sequence unbroken by any
new and independent cause, produces an event and without which
the event would not have happened.

16

“But for” rule

A rule used to determine whether a defendant’s act was the proximate
cause of a plaintiff’s harm based on the determination that the plaintiff’s
harm could not have occurred but for the defendant’s act.

17

Substantial factor rule

A rule used to determine proximate cause of a loss by determining
which of the acts are significant factors in causing the harm.

18

Foreseeability rule

A rule used to determine proximate cause when a plaintiff’s harm is
the natural and probable consequence of the defendant’s wrongful act
and when an ordinarily reasonable person would have foreseen the
harm.

19

Intervening act

An act, independent of an original act and not readily foreseeable,
that breaks the chain of causation and sets a new chain of events in
motion that causes harm.

20

Concurrent causation (concurrent causation doctrine)

A legal doctrine stating that if a loss can be attributed to two or more
independent concurrent causes—one or more excluded by the policy
and one covered—then the policy covers the loss.

21

Negligence per se

An act that is considered inherently negligent because of a violation
of a law or an ordinance.

22

Res ipsa loquitur

A legal doctrine that provides that, in some circumstances, negligence
is inferred simply by an accident occurring.

23

Exclusive control

The control of only one person or entity; in tort law the control by
the defendant alone of an instrument that caused harm.

24

Comparative negligence

A common-law principle that requires both parties to a loss to share
the financial burden of the bodily injury or property damage according
to their respective degrees of fault.

25

Contributory negligence

A common-law principle that prevents a person who has been
harmed from recovering damages if that person’s own negligence contributed
in any way to the harm.

26

Pure comparative negligence rule

A comparative negligence rule that permits a plaintiff to recover damages
discounted by his or her own percentage of negligence, as long as
the plaintiff is not 100 percent at fault.

27

50 percent comparative negligence rule

A comparative negligence rule that permits a plaintiff to recover
reduced damages so long as the plaintiff’s negligence is not greater
than 50 percent of the total negligence leading to harm.

28

49 percent comparative negligence rule

A comparative negligence rule that permits a plaintiff to recover
reduced damages so long as the plaintiff’s negligence is less than the
other party’s negligence.

29

Slight versus gross rule

A rule of comparative negligence that permits the plaintiff to recover
only when the plaintiff’s negligence is slight in comparison with the
gross negligence of the other party.

30

Release

A legally binding contract between the parties to a dispute that
embodies their agreement, obligates each to fulfill the agreement,
and releases both parties from further obligation to one another that
relates to the dispute.

31

Exculpatory clause (exculpatory agreement)

A contractual provision purporting to excuse a party from liability
resulting from negligence or an otherwise wrongful act.

32

Liquidated damages

A reasonable estimation of actual damages, agreed to by contracting
parties and included in the contract, to be paid in the event of a
breach or for negligence.

33

Gross negligence

An act or omission that completely disregards the safety or rights of
others and is exaggerated or aggravated in nature.

34

Immunity

A defense that, in certain instances, shields organizations or persons
from liability.

35

Sovereign immunity (governmental immunity)

A defense to negligence that protects the government against lawsuits
for tort without its consent.

36

Proprietary function

A local government’s act that is not considered part of the business of
government and that could be performed by a private enterprise.

37

Governmental function

An act that can be performed only by government.

38

Administrative act (discretionary act)

An act, a decision, a recommendation, or an omission made by a
government official or agency within the authority of that office or
agency.

39

Ministerial act

An act that is directed by law or other authority and that requires no
individual judgment or discretion about whether or how to perform it.

40

Interspousal immunity

A defense to negligence that grants immunity to one spouse from the
other spouse’s lawsuit for torts committed before, during, and after the
marriage.

41

Parent-child immunity

A defense to negligence that grants immunity to parents from their
children’s lawsuits for torts.

42

Statute of limitations

A statute that requires a plaintiff to file a lawsuit within a specific
time period after the cause of action has accrued, which is often when
the injury occurred or was discovered.

43

Statute of repose

A statute that requires a plaintiff to file a lawsuit within a specific
time period after a wrongful act by a defendant, such as improper
construction of a building, regardless of when the injury occurred or
was discovered.

44

Trespasser

A person who intentionally enters onto the property of another without
permission or any legal right to do so.

45

Nuisance

Anything interfering with another person’s use or enjoyment of property.

46

Attractive nuisance doctrine

A doctrine treating a child as a licensee, or guest, rather than a trespasser
on land containing an artificial and harmful condition that is
certain to attract children

47

Licensee

A person who has permission to enter onto another’s property for his
or her own purposes.

48

Invitee

Person who enters a premises for the financial benefit of the owner or
occupant.

49

Express license

The oral or written permission to enter onto another’s land to do a
certain act, but not the granting of any interest in the land itself.

50

Implied license

The permission to enter onto another’s land arising out of a relationship
between the party who enters the land and the owner.

51

Public invitee

A person invited to enter onto premises as a member of the general
public for a purpose for which the land is open to the public.

52

Business invitee

An individual who has express or implied permission to be on the
premises of another for the purpose of doing business.

53

Battery

Intentional harmful or offensive physical contact with another person
without legal justification.

54

Assault

The threat of force against another person that creates a well-founded
fear of imminent harmful or offensive contact.

55

False imprisonment

The restraint or confinement of a person without consent or legal
authority.

56

False arrest

The seizure or forcible restraint of a person without legal authority.

57

Intentional infliction of emotional distress

An intentional act causing mental anguish that results in physical
injury.

58

Negligent infliction of emotional distress

An unintentional act causing mental anguish that results in physical
injury.

59

Defamation

A false written or oral statement that harms another’s reputation.

60

Slander

A defamatory statement expressed by speech.

61

Libel

A defamatory statement expressed in a writing.

62

Publication

In tort law, the communication of a defamatory statement to another
person.

63

Product disparagement, or trade libel

An intentional false and misleading statement about a characteristic
of a plaintiff’s product, resulting in financial damage to the plaintiff.

64

Fraud

An intentional misrepresentation resulting in harm to a person or an
organization.

65

Bad faith (outrage)

A breach of the duty of good faith and fair dealing.

66

Injurious falsehood

A group of torts involving disparagement that causes harm to any
kind of legally protected intangible property right.

67

Malicious interference with prospective economic advantage

A tort involving intentional interference with another’s business, or
with another’s expected economic advantage.

68

Malice

The intent to do a wrongful act without justification or excuse.

69

Unfair competition

Use of wrongful or fraudulent practices by a business to gain an unfair
advantage over competitors.

70

Interference with employment

An unjustified intentional act that interferes with another’s valid or
expected business relationship.

71

Wrongful-life action

A lawsuit by or on behalf of a child with birth defects, alleging that,
but for the doctor-defendant’s negligent advice, the parents would not
have conceived the child or would have terminated the pregnancy so
as to avoid the pain and suffering resulting from the child’s defects.

72

Wrongful-pregnancy action (wrongful-conception action)

A lawsuit by a parent for damages resulting from a pregnancy following
a failed sterilization.

73

Malicious prosecution

The improper institution of legal proceedings against another.

74

Probable cause

The grounds that would lead a reasonable person to believe that the
plaintiff committed the act for which the defendant is suing.

75

Malicious abuse of process

The use of civil or criminal procedures for a purpose for which they
were not designed.

76

Trespass

Unauthorized entry to another person’s real property or forcible interference
with another person’s personal property.

77

Private nuisance

An unreasonable and unlawful interference with another’s use or
enjoyment of his or her real property.

78

Public nuisance

An act, occupation, or structure that affects the public at large or a
substantial segment of the public, interfering with public enjoyment
or rights regarding property.

79

Intentional nuisance

Purposeful interference with another party’s enjoyment of his or her
property.

80

Conversion

The unlawful exercise of control over another person’s personal property
to the detriment of the owner.

81

Chattel

Tangible, movable personal property.

82

Strict liability (absolute liability)

Liability imposed by a court or by a statute in the absence of fault
when harm results from activities or conditions that are extremely
dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or
inappropriate.

83

Ultrahazardous activity (abnormally dangerous activity)

An activity that is inherently dangerous; if harm results, the performer
may be held strictly liable.

84

Toxic tort

A civil wrong arising from exposure to a toxic substance.

85

Environmental law

The body of law that deals with the environment’s maintenance and
protection.