FIN 350 Final

-Intentional torts (bodily damage, personal injury, and property damage)
-Absolute liability situations (like owning a dangerous animal)
-Negligence

1)Legal duty to use care
2)Failure to meet duty
3)Injury/property damage resulted
4)Proximate cause: "unbroken chain of events"

Damage awarded may be: special (for what can be itemized), general (for what can't), punitive

-more complete coverage
-common expiration date
-lower cost than buying coverages separately

Coverage A: Dwelling (home value)
Coverage B: Other structures (10% of A)
Coverage C: Personal Property (50% of A)
Coverage D: Loss of Use (30% of A)

A and B are all-risk, C is named perils

-If an insured peril damages the home and it cant be used
-Lost rent if a tenant can't use the rental area of home
-"prohibited use"

Under coverage A and B, the insured receives the greater of two amounts:
-ACV of the loss...OR
-Insurance carried/80% of replacement x loss (coinsurance)

Losses under coverage C:
ACV

-Duties after a loss
-Appraisal clause
-No suit against the insurer
-Concealment or fraud
-Pair or set clause
-Mortgage clause

-Earthquake, subsidence, sinkholes
-War, nuclear, neglect, intentional loss
-Floods, waves, tides, surface water
-Power failure off the premises
-"concurrent causation"

-Coverage E: Personal Liability insurance

E: Provides up to 100k per occurrence. Applies to BI and property damage liability

Liability coverage "follows the insured." Insurer also pays legal defense costs IN ADDITION to the liability limit.

Coverage F: Medical payments to others.

-provides up to $1,000 for medical payment to others. This coverage is intended to encourage the insured to get medical attention for someone else, to reduce coverage E costs

-Motor vehicle liability
-Watercraft liability
-Aircraft
-Intentional
-Business
-Professional
-War, disease, abuse, drugs

Provides protection against a catastrophic lawsuit or judgement.

Characteristics:
-excess liability insurance
-broad coverage
-self-insured retention (SIR-deductible)
-reasonable cost

Part A: Liability coverage
B: Medical payments to others
C: Uninsured motorists coverage
D: Coverage for Damage to your auto
E: Duties after an accident or loss
F: General provisions

Liability Coverage

-Most important, and state mandated
-Insurer pays for BI and Property damage
-50/100/25 means BI per person/BI total/Property liability

Medical Payments
-Small medical expense benefit
-Covers named insured and passengers

Uninsured Motorists
-Pays compensatory damages
-Applies only if other driver is legally liable in three situations: uninsured drivers, hit and run drivers, and if the other drivers insurance company is insolvent

Damage to your auto. Two optional coverage are provided:
-Collision loss: collision defined as "upset of the covered auto or impact with another vehicle or object"
-Other than collision: all risk coverage

Duties after a loss
-Determine if there are injuries requiring medical attention. If there are injuries or property damage, call police
-Exchange information with other driver and contact agent
-Cooperate with your insurer in the claims process

If you want to sue, you must have liability insurance

-There is no good use of pure no fault
-Modified no fault: Uses a dollar, or verbal threshold, and you cannot sue unless your medical bills are high enough
-Add on plans: you retain the right to sue

Regulated at state level. Regulated because:
-Maintain insurer solvency
-Protect consumers
-Ensure reasonable rates
-Make sure coverage is available

A legal wrong for which the law allows a remedy in the form of money damages

1. Contributory Negligence
– If the injured person’s conduct falls under the standard of care required for his/her protection, and such conduct contributed to the injury, the injured person cannot collect damages.

1. Absolute (Strict) Liability
2. Res Ipsa Loquitur – “the thing speaks for itself”
a. Ex. Dentist pulls wrong tooth.
b. Ex. Doctor amputates wrong leg

2.Comparative Negligence
– If both the plaintiff (injured person) and defendant (negligent person) contribute to the plaintiff’s injury, the financial burden of the injury is shared by both parties according to their respective degrees of fault (percentage based).
Three types include:
a. Pure Rule – Can collect damages for injury even if you are negligent. (60% at fault = you receive 40% of damages) Note: Washington State uses this.
b. 50 Percent Rule – You cannot collect if you are 50% or more at fault (same as Pure Rule – percentage based damages)
c. 51 Percent Rule – You cannot collect if you are 51% or more at fault (same as Pure Rule – percentage based damages)

3. Last Clear Chance Rule
– Modification of “Contributory Negligence” where a plaintiff who is endangered by his or her own negligence can still recover damages from the defendant if the defendant has a clear chance to avoid the accident but fails to do so.

4. Assumption of Risk
– A person who understands & recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury.