Chat with AIExam 5: Negligence, Professional Liability, and Insurance
Explain what is meant by an "insurable interest" and how the existence of this principle impacts on the right to collect on an insurance claim.
(89) 
VerifiedDiscussion: One of the most important aspects of insurance law is the requirement that the person taking out insurance have an insurable interest in the thing insured.Students should demonstrate an understanding of what an insurable interest is and why it is so important.The insurable interest requirement is simply that it be clear that the person purchasing insurance coverage will lose something if the insured against event happens.Thus,when the insurance is paid,there is no windfall to the person taking out the insurance; rather,there is simply compensation for a loss.Otherwise,it would be like gambling.You place a wager that the house in question will burn down,and when it does,you win.Of course,you don't win,and the insurance is just a way of spreading the risk; however,if you could insure something you didn't have such an interest in,such as your neighbour's house,you could get a windfall,and it would be like gambling. Students must first show they understand this and then could explain how insurable interest works in different situations.Where you have an interest in property and insure it,you can collect only what you can lose (to the limit of that interest).Where life insurance is involved,the extent of the interest is assumed to be the amount of insurance coverage purchased.With a relative,the presence of an insurable interest is clear,but with others,permission is normally needed.Often the life of key employees or the principal of the business will be insured to cover against the loss to the business were that key employee to die suddenly.
The court determines the standard of care required and whether or not there was a failure to live up to that standard.
(89) VerifiedTrue
What is the role of self-governing professional bodies?
(88) VerifiedTypically,these bodies have varying degrees of control over the relevant practice.This can extend to granting licences,determining membership,setting standards of conduct,setting educational qualifications and continuing training requirements,and disciplinary matters.
Which of the following statements with regard to the tort of negligence is false?
(86) With regard to the law of negligence,which of the following is false?
(76) Celebrating the end of the fall term,Mr.C had already drunk six beers before he arrived with his friends at the Spoke Tavern,run by the student council.After he had two more beers,he was refused more and told he would be asked to leave if he did have more.He returned to the table and continued to drink.He was ordered to leave.While being escorted out,he resisted but was ejected.He sneaked back in,"spoiling for a fight," and was removed once more.He returned,and when pushed through the doorway,he stumbled.His hand went through a small window,and he had to undergo surgery to repair a tendon in his wrist.Mr.C sued the tavern,the bouncer,and the student council (as operators of the tavern)under the Occupiers' Liability Act.Read each of the following separately and indicate which is false.
(77) A surety bond provides assurance that the party to a contract will perform its part of the contract.
(90) Sarah Iris,a middle-aged woman,was struck down as she crossed the street at 41st and Knight streets,by a car whose driver accidentally drove through the red light.She was not killed,but badly injured.Unfortunately,she was suffering from osteoporosis,a condition in which her bones had lost most of their mass and were fragile and brittle.Consequently,the bones in her legs were not expected to heal at all.She lost the use of her legs.She successfully sued the driver for negligence.What would be the amount of damages to be paid by the defendant?
(72) What is the typical result when spouses have overlapping extended benefits coverage,such as dental and disability?
(85) Joe was driving his automobile when Sam came from a side street and went through a stop sign without stopping,almost causing an accident.Joe swerved to avoid Sam and was successful in doing so.He wrote down Sam's licence number and sued Sam for his negligent driving.Indicate the expected result.
(87) The forfeiture rule will not allow a criminal to profit from a crime,but does not affect those claiming through the criminal's estate.
(84) Joe was drunk and driving his car.When he saw Sam on the side of the road hitch-hiking,he opened the door and offered Sam a lift.Sam got in despite the fact that he could smell alcohol on Joe's breath.Subsequently,Joe was in as accident,in which Sam was injured.Sam has sued him for negligence.Indicate what likely defence Joe would use in these circumstances and whether it would be successful.
(80) Explain how the courts determine whether a duty of care exists in a negligence action.
(98) Strict liability means that liability can be established even when there is no fault.
(66) 
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