Cpcu 552 Chapter 1

branch of the law that imposes penalties for wrongs against society

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

the failure to excercise the degree of care that a reasonable person is a similar situation would excercise to avoid harming.

a tort committed by a person who forsees that his or her act will harm another person

liability imposed by a court or by a statute int he absense of fault when harm results from activities or dondtions that are extremely dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate

legally enforceable agreement between 2 or more parties in which each party makes some promises

the failure, without legal excuse, to fulfill a contractual promise

a contractual provisious that obligates one of the parties to assume the leagal liability of another party

liability assumed through a hold-harmless argreement

a written law passed by a legislative body at either the state or federal level

costs of investigate and defense as well as any damages that the insured may be found liabile for

business can have a liability loss bc it has experience the cost of investigating and defending the suit

* duty owed to another person

* breatch of that duty

*close connection between the negligent act and resulting harm

* occurrence of actuall loss or damage recognized by law and measurable by money

* premises and operations

* products and completed operations

* automobile

* workers comp

* management

* professional

* environmental

* marine

* aircraft

2. products or completed operations

1. product was defective when left manfacture's custody

2. defective condition made the product unreasonably dangerous

3. defective product wwas the proximate cause of plaintiff's injury

ownership itself does not make owner liable for injuyt or damages caused by someone else's negligent operations

plaintiff must show that the party entrusting the vehicle knew or shoudl have known o the driver's incompetence, inexperience or reckless tendencies

verbal threshold defines the seriousness of injuries beyond which the right to sue is allowed. monetary damages threshold sets dollar limit that accident victim can sue

1. injury to employee was intentional

2. employee's injury caused by employer's negligence

3. injury resulted from employer's negligence while acting in some capacity other than employer

a conscious act or decision nto to act that reduces the frequency and/or severity of losses or make losses more predictable

process of making and implementing decisons that will minimize the adverse effects of accidental losses on an organization

event or cicumstance that directly leads to an occurrence

risk control technique that reduces the frequency of a particular loss

risk control technique that reduces the severtiy of a particular loss

risk control technique that involves ceasing or never undertaking an activity that the possibility of a future loss occuring from that activity is eliminated

1. liability expoure presented by the producats and activities of many organizations have potential to cause harm.

2. exposures that develop along the loss continuum can result in significant financial consequences

3. poor safetly records can cause reputational damage

will yield more efficient and safer operation

give employees sense of ownership in the program. also can identify the root causes of accidents and determine obstacles

1. cost effectiveness

2. legal requirements

3. requirements and recommendations of the organization's insurers

4. company's image

5. degree of risk aversion of an organization's senior management

technique of mitigating the effects of losses after they occur. also provide information after accident to determine root cause to prvent from happening in the future.

legal sysem in which the body of law is derived more from court decisions as opposed to statutes or constitutions

branch of civil law that deals with civil wrongs other than breach of contract

formal laws or statutes enacted by federal state or local legislative bodies

used to guide a complete assessment and proper documentation

1. safety procecures

2. proper housekeeping

3. protective features

some are more difficult to control thant those that occure on own premises

strict liability which focuses on the inherent safetly of the product itself rather than the conduct of the manufacturer

people have a high level of control over how to drive. people make decisions that can reduce or create liability

one in which employees are not only concerned for their owne safetly but also that of their co workers

can mitigate the possibility of intrusiion into an organization's computer network by third party.