Exam 2: Defining the Insurable Event

Chandy is suing Bill and they are in a contributory negligence state. Chandy's total injuries are $100,000,and the jury finds that he was 5% at fault in the incident. How much money will Chandy be entitled to collect?

A breach of contract legally is known as a "tort."

If assumption of the risk is established it means the defendant usually must pay for damages.

Most speculative risks are insurable.

Given a broad definition of legal liability,what are the three legal categories for describing situations in which one person injures another? Which ones are generally insurable?

Underwriting might best be defined as:

The items in an insurance pool must be similar to reduce subsidization.

Assume a person is severely injured by electricity while trying to remove a kite from the power line after having climbed a power pole without the utility's permission.The injured party sues the power company.All of the following would add to a good defense from the standpoint of the power company except:

FEMA stands for

Kim=s automobile is struck by a negligent motorist. She suffers bodily injuries that cause her to have $73,000 in medical expenses. She is unable to work for several weeks and loses $10,000 in wages. The repair bill to fix her car is $20,000. Choose the true statement from the following answer choices:

All of the following adds to the defense or provides an excuse for the defendant in a legal liability claim except:

The plaintiff in a negligence suit is the party who allegedly injured the defendant.

All of the following legal doctrines result in more individuals being held liable for negligence except:

"Subsidization" in an insurance pool means:

Subsidization in insurance pools occurs if a 40 year-old male is charged the same life insurance premium as a 20 year-old male.

One reason catastrophes are difficult to insure is because the damage is so unpredictable.

If you were a life insurance underwriter,which of the following underwriting criteria would you MOST prefer to use because of its reliability?

Competition would totally eliminate subsidization in insurance pools if there were no regulator restricting competition between insurance companies.

Why is a large number of exposure units required for a risk to be insurable?

You have been sued for negligence.Which of the following would not be an effective legal defense for you to use?