RMI-3011 Study Guide - Quiz Guide: Insurable Interest, Comparative Negligence, Estoppel
6 Oct 2017
School
Course
Professor
Document Summary
A legal wrong for which the court allows a remedy in the form of money damages. The plaintiff can sue the tortfeasor for damages. There are three categories: intentional, strict liability, negligence. The intentional failure of the applicant for insurance to reveal a material fact to the insurer. Statements made by the applicant for insurance that are misleading and false, which makes the contract voidable. A situation where there are two possibilities: loss or no loss. Some examples would be premature death, property damage from natural events, and job-related accidents. There is always either an adverse or neutral outcome with pure risk. Encompasses all major risks faced by a business firm. These risks include pure risk, speculative risk, strategic risk, operational risk, and financial risk. A physical condition that increases the frequency or severity of loss. Examples: icy roads, defective wiring in buildings, defective locks on doors.
