What does casualty insurance cover?
It covers liability when someone causes damage, injury, accidents, or death to others.
Is casualty insurance first-party or third-party coverage?
It’s third-party coverage because it pays for losses suffered by others, not the insured.
What expenses can casualty insurance help pay for?
Judgments (court-ordered payments)
Settlements (to avoid lawsuits)
Defense costs (legal fees, even if not guilty)
What is tort liability?
When someone is held legally responsible for harm to another person and must compensate them through private legal action.
Negligence
when someone doesn’t act with as much care as a reasonable person would in a similar situation. It’s the most common cause of tort liability
What are the 3 elements of negligence?
Duty of care owed
Harm or damages occurred
Proximate cause (the act directly led to the harm)
What is an intervening cause in negligence?
It’s a separate action that breaks the chain between the negligent act and the harm—so the original act is not considered the cause.
Who is an invitee?
Someone invited onto property mainly for the owner’s benefit (e.g., customers); owed the highest level of care.
Who is a licensee?
Someone with permission to be there for their own benefit (e.g., a friend); owed a moderate level of care.
Who is a trespasser?
Someone on property without permission; generally not owed a duty of care.
What is an attractive nuisance?
A dangerous condition (like a pool) that could attract and harm children; owners may still be liable even to trespassers.
Contributory Negligence
If the injured party is even slightly at fault, they may be barred from recovering any damages.
Last Clear Chance Rule
Even if the injured party was negligent, they may still recover damages if the other party had a final opportunity to prevent the harm but failed to do so.
Comparative Negligence
Fault is divided among all parties based on their degree of negligence. The injured party can still recover damages minus their percentage of fault.
Assumption of Risk
If someone knowingly and voluntarily takes part in a risky activity, they may not be able to sue for resulting injuries.
Statute of Limitations
Legal action must be taken within a specific time frame. After that, no claim can be made, even if the other person was negligent.
What is strict liability?
Strict liability is a legal concept where a person or business can be held liable for certain damages even without proof of negligence, though there may be rare exceptions.
What is absolute liability?
Absolute liability is a form of legal responsibility where someone is held liable for damages with virtually no exceptions, even if all reasonable precautions were taken.
How do strict liability and absolute liability differ?
Strict liability may have limited exceptions, while absolute liability has none—it imposes total responsibility for certain acts or conditions.
Vicarious liability
Exists when one party is held responsible for another party’s actions. Parents, for instance, may face vicarious liability when their child causes a loss.
For independent contractors, vicarious liability is sometimes called
contingent liability
Premises and operations liability
can be defined generally as liability arising from accidents at the insured’s place of business or while the insured is conducting business.
Completed operations liability
arises when work or a service has already been finished by a business and the business’s poor performance causes harm at a later date.
product liability
liability that exists whenever a product leaves the business premises and causes harm to people or property
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Level 1 Chapter 129
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Level 1 chapter 236
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Level 1 chapter 351
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Level 1 chapter 442
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Level 2 chapter 120
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Level 2 chapter 229
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Level 2 chapter 360
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Level 3 chapter 116
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Level 3 chapter 278
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Level 3 chapter 336
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Level 4 Chapter 134
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Level 4 chapter 2 Business Interruption Insurance38
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Level 4 Chapter 3 Marine Insurance19
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Level 4 chapter 4 Assorted Commercial Property Products56
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Level 5 Chapter 1 Personal Lines Casualty Insurance103
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Level 5 chapter 2 Assorted Personal Lines Casualty Products17
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Level 6 Chapter 1 Commercial Lines Casualty Insurance90
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Level 6 Chapter 2 Commercial General Liability Insurance48
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Level 6 chapter 3 Employment Practices Liability Insurance29
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Level 6 chapter 4 Workers' Compensation and Employers' Liability Insurance66
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Level 6 chapter 5 Professional Liability/Errors and Omissions Insurance35
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Level 6 Chapter 6 Cyber Insurance36
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Level 6 Chapter 7 Miscellaneous Casualty Insurance Products45
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Level 7 chapter 1 Texas Laws and Rules107
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Level 7 Chapter 2 Texas Laws and Rules (Property and Casualty)101
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Missed information32
