IN Property & Casualty study materials
IN Property & Casualty study resources

IN Property & Casualty: Casualty Insurance Basics

IN Property & Casualty · Work through your exam, one topic at a time.

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Casualty Insurance Basics

Negligence is the core cause of action

Four elements must all be present: legal duty owed, breach of that duty, proximate cause (an unbroken, foreseeable chain), and actual damages. Defenses include comparative fault (Indiana's modified rule reduces damages by the plaintiff's share and bars recovery when the plaintiff is more than 50% at fault), assumption of risk, and intervening cause. Negligence per se arises from violating a safety statute; res ipsa loquitur lets the facts speak when the instrumentality was in the defendant's exclusive control.

Strict and vicarious liability

Strict/absolute liability needs no negligence - products liability, abnormally dangerous activities, dog-bite statutes. Vicarious liability holds an employer liable for an employee's acts within the scope of employment; hiring an independent contractor generally avoids that exposure.

Damages

Compensatory damages are special (medical bills, lost wages - documented) plus general (pain and suffering). Punitive damages punish intentional or gross misconduct and are typically uninsurable.

Personal and business auto liability

Part A bodily injury/property damage, Part B medical payments, Part C uninsured/underinsured motorists, Part D physical damage, plus supplementary payments. UM responds when the at-fault driver has no insurance; UIM responds when those limits are too low.

Traps

Confusing UM with UIM; treating general damages as documented; forgetting that defense costs sit outside the limit in personal auto but inside the limit in many CGL forms.

Rule of thumb

Write out duty, breach, proximate cause, damages in that order on scratch paper - any answer choice missing damages is wrong.