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General Level 1 Licensing > Liability of All Property Policies > Flashcards

Liability of All Property Policies Flashcards

1
Q

what is a tort?

A

a civil wrongdoing

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2
Q

what is a tortfeasor??

A

an individual who commits a tort (civil wrongdoing)

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3
Q

common law is law of…..

A

precedence

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4
Q

what are some examples of tort?

A

-defamation of character
-libel and slander
-nuisance
-trespassing
-assault
-fraud
-deceit

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5
Q

what is libel vs slander?

A

libel is written whereas slander is spoken

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6
Q

what are the 4 elements of tort?

A

1) duty owed
2) duty breached
3) as a proximate cause of doing so, damages could be suffered
4) results must be forseeable

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7
Q

is it possible for something to be a tort if not all 4 conditions are met?

A

no, need all 4

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8
Q

what is negligence?

A

the omission or failure to do something which a reasonable person would do, or doing something which a prudent and reasonable person would not do,

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9
Q

what is strict liability?

A

the imposition of liability on a party without having to find a fault. strict liability is imputed by law to situations it finds to be inherently dangerous

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10
Q

in order from to whom we owe the HIGHEST duty of care to the LOWEST, rank the 4 categories

A

** Children (property absolutely must be free and clear of all dangers)
*** Invitees (warn not only just of danger, but everything else)
** Licensees (must warn of danger)
* Trespassers (must not set traps)

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11
Q

what is an invitee?

A

someone you know is coming and you know when, ex: pizza delivery

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12
Q

what is a licensee?

A

someone you know comes, but dont know when
ex: social guests, snowmobilers, hunters, gas company, etc

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13
Q

why are social guests considered licensees?

A

because they could drop by unannounced

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14
Q

what an example of a warning for a licensee?

A

beware of dog sign

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15
Q

what is vicarious liability?

A

legal rule that holds a person or company responsible for the actions committed by others or by their employees

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16
Q

what is a good example of vicarious liability?

A

Errors and omissions

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17
Q

under homeowners form, are animals covered for liability?

A

YES, under homeowners form, any animal residing in the house is covered from a liability standpoint, anywhere in the world

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18
Q

define bodily injury:

A

includes either injury to a body, sickness or disease, or death that can result from either of these at any time

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19
Q

define property damage:

A

physical injury to tangible property OR the resultant loss of use of that property

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20
Q

liability coverage is provided on an occurrence basis, which means:

A
  • happened suddenly and unexpectedly, OR
    -over a long period of time, OR
    -as a continuous and repeated exposure
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21
Q

the liability wordings use the word “compensatory”, which means…

A

to put someone else back in the same financial position

ex: cost for bodily injury

22
Q

liability covers ______ ______ damages

A

3rd party

23
Q

nominal:

A

cost of fines or a number

24
Q

punitive:

A

cost to punish

ex: jail time

25
Q

exemplary:

A

to make an example of

26
Q

what are the 2 types of damages

A

special and general

27
Q

special damages are…

A

out of pocket expenses such as medical expenses, loss of earnings

28
Q

general damages are…

A

less quantifiable expenses such as pain and suffering, disability of future earnings

29
Q

taken together, special and general damages are called…

A

compensatory damages

30
Q

what is coverage E?

A

liability coverage

31
Q

who is insured under section II of a homeowners policy?

A

everyone that was insured under section I

32
Q

what limit does Coverage E automatically come with on a homeowners form?

A

$1mill

33
Q

section II deals with premises liability at your property, plus:

A

-all premises where the insured maintains a residence provided they don’t own it
-premises you reside in temporarily for less than 90 days
-premises in Canada to be occupied as principal residence
-individual or family cemetery plots, anywhere in the world
-vacant land in Canada that you own or rent
-land in Canada where contractor building house to be occupied by you as your principal residence

34
Q

if you damage a hotel (or some other premises on which you temporarily reside for less than 90 days), the liability is covered under home policy called what and what perils does it cover?

A

Tenants Legal Liability
only 4 perils:
1) fire
2) explosion
3) smoke
4) water damage

35
Q

for how long is liability coverage applied to premises in canada to be occupied as principle residence? ex new house

A

for 30 days, or until end of policy term, or until the property insurance is in place

36
Q

list the exclusions under coverage E

A

-liability under contract UNLESS policy would pay anyway
-damage to your own property
-damage to other’s property in your care, custody or control (except Tenants Legal Liability)
-damage to your own property because you are working on it
-bodily injury to you
-personal actions of named insured not living in the household (ex:divorced)

37
Q

what is an example of the liability under contract exclusion?

A

-homeowner owns a trampoline and has parents of the neighbourhood children sign a “waver” saying they are not liable for injury
-but, as the injury is to a CHILD (to whom we owe the highest duty of care), the waiver is irrelevant because the insurer is liable anyway

38
Q

what is a hold harmless agreement?

A

used as a release of liability in a contract that protects one party from injury or property damage caused by another party. By signing the clause, the other party is agreeing not to hold the insured legally responsible for the risks involved in certain services.

39
Q

why is your liability coverage under your homeowners form not applied to your friends barbecue that you broke while you were using it?

A

because the person who actually owns it is the only one who can insure it, and his policy would respond to all damages

40
Q

for example, imagine you are using your friends lawnmower, and drive over a rock, causing sparks to fly and causing a hostile fire to the neighborhood. who is the proximate cause of loss, and how do the policies respond?

A

-person who borrowed the lawnmower is the proximate cause of loss
-person who borrowed the lawnmowers’ policy responds to all ensuing damage to third party neighborhood loss caused by the fire, but any damages to the actual lawnmower would be covered by the policy of the person who owns that lawnmower

41
Q

what is Coverage F?

A

voluntary medical payments
-as a ‘good neighbor’ policy to avoid further lawsuits
-only named insured can offer this up
-NO DEDUCTIBLE
-only applies to medical payments incurred within one year, up to $5000, if someone is injured and you feel liable

42
Q

what is Coverage G?

A

voluntary property damage
-as a ‘good neighbor’ policy to avoid lawsuits
-NO DEDUCTIBLE
-only named insured can offer this up
-limit is up to $1000
-for accidents unintentionally caused, or even if intentionally caused by child of 12 years AND UNDER

43
Q

what is coverage H?

A

voluntary compensation for residenCE employees

-very tiny limits
-does not cover loss of wages of employee because they cannot work

44
Q

under which portion of Section I on the homeowners form are watercraft and motorized vehicles automatically covered?

A

coverage E

45
Q

what are the criteria for owned watercraft and motorized vehicles under coverage E?

A

-outboard motor, not more than 16 HP
-inboard motor, not more than 50 HP
-lawnmower, not more than 25HP
-non-motorized, not more than 26’ long

46
Q

where is the usage of golf carts automatically covered under coverage E of a homeowners form?

A

golf carts ONLY on GOLF COURSE

47
Q

under coverage E of a homeowners form, what are the criteria for covg of NON owned watercraft and motorized vehicles?

A

-any type of watercraft
-any type of motorized vehicle not subject to MVR

Exclusions
-race test
-business purposes
-rent to others
-stole boat
-carrying passengers

48
Q

business insurance is designed to cover business exposures. however, there are some times when it can be covered under homeowners liability if it is INCIDENTAL use. Examples:

A

-personal actions during course of trade unrelated to what you earn money doing
-occassional rental of your home to others
-once in a blue moon renter/boarder and something falls on them
-rental or occupancy of studio space for one time office use
-rental to others or holding for rent not more than 3 car spaces in a garage
-part time business pursuits of someone under 21

49
Q

what are some other common exclusions of liability coverage under homeowners form:

A

-transmission of communicable disease
-failure to provide professional services, such as malpractice or consulting services
-emotional distress to others, psychological abuse or molestation

50
Q

the bodily injury and property damages coverage include…

A

ONLY costs that are to put the third party back into the same financial position

51
Q

our insurance client is the ___________ and our policy will defend them

A

defendant

52
Q

the injured third party is the ______ and our insured policy pays….

A

plaintiff, compensatory damages only

General Level 1 Licensing (23 decks)

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