Chapter 6. Introduction to Liability Insurance

Terms you'll need to understand:

  • Negligence

  • Tort

  • Proximate cause

  • Intervening cause

  • Compensatory damages

  • Punitive damages

  • Bodily injury

  • Property damage

  • Personal injury

  • Occurrence

  • Accident

Concepts you'll need to master:

  • Contributory negligence

  • Comparative negligence

  • Assumption of risk

  • Statute of limitations

  • Absolute liability

  • Vicarious liability

  • Third party losses

  • Defense costs

  • Supplementary payments

  • Policy limits

  • Split limits

  • Single limit

  • Aggregate limit

In contrast to property insurance, which we covered in the last chapter and under which an insured's own property is covered, insureds might also need liability insurance, which is covered in this chapter. Liability insurance is designed to protect insureds who might be responsible ...

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