Exam 5: Negligence, Professional Liability, and Insurance

Once it has paid out on the loss,an insurance company can step into the shoes of the insured and pursue a claim against the person who caused the loss.

A seven-year-old boy followed his dog into Mr.Howe's backyard.He fell into a large hole dug by Mr.Howe in preparation for a tree that had been ordered.The boy broke his arm in the fall.At the hospital,the boy was treated by a doctor employed there for four years.The doctor did not set the boy's arm because he made a mistake in reading the x-ray.Because the arm was not treated correctly,it healed improperly.When the boy kept complaining,his mother took him to their family doctor,who discovered the error.The boy had to have his arm rebroken so that it could be set properly.On these facts,which of the following is true?

_____________ is the type of insurance most closely associated with torts.

To what does "errors and omissions" insurance refer?

A fidelity bond is established when the employee pays the employer a fee to be covered while on the job.

Discuss the role of insurance,especially compulsory insurance,and how it relates to tort law.

Which of the following is correct with respect to the meaning of an insurable interest?

It is up to an insured whether the insurer rebuilds,repairs,or replaces damaged goods.

Because of the devastating losses and injuries associated with automobile collisions,what have many provinces done?

How are professionals treated differently under the rules of negligence?

Distinguish between misfeasance and nonfeasance.

Sumanthra,an accountant,prepared financial statements for ZeeTech Ltd.A cutting edge technology company,ZeeTech was actively seeking private investment in order to finance a new electronics device.Despite the fact that Sumanthra followed Generally Accepted Accounting Principles (GAAP),the statements she prepared were misleading.Arif and Alena,both potential investors,relied on the statements Sumanthra had prepared.As a result of their reliance,Arif and Alena both invested in ZeeTech and lost a considerable sum of money.Independently,Arif and Alena decided to sue Sumanthra for their financial loss.Which of the following is true?

In determining duty,what kind of factors would the court take into consideration in determining whether the defendant lived up to the standard of a reasonable person?

An insurable interest refers to the fact that the insurance company has to have been paid a premium so that they have an interest in the contract.

What is the reasonable person test?

Give three examples where tort standards have been modified by legislation.

Some jurisdictions have instituted "no fault" insurance programs.Which of the following statements is true?

A land appraiser prepared an appraisal of a property for a real-estate development company.The appraiser had been told that the appraisal would be used by the company to attract potential investors.Because the appraiser forgot to check the recent changes in the zoning by-laws,the appraisal was not accurate; the investor,a party unknown to the appraiser,was misled about the value of the land and,consequently,suffered a financial loss.On these facts,which of the following is true?

Stella bought a cup of coffee at the drive-through window at a coffee shop.Holding the cup between her knees and attempting to take off the lid to add cream,she spilled the coffee.She suffered burns to her thighs.If this happened in Canada,which of the following is true?

In which of the following would the plaintiff not succeed in an action for negligence?