Aic 32 – Liability Claim Practices – Chapter 2

Front 1

Exposure rule

Back 1

Under the exposurerule, an occurrence takes place at the time of the first exposureto damage-producing elements.

Front 2

Manifestation rule

Back 2

The rule stating that occurrence takes place at the time the injury orproperty damage is discovered.

Front 3

Punitive damages (exemplary damages)

Back 3

A payment awardedby a court to punish a defendantfor a reckless, malicious, or deceitful act to deter similar conduct;the award need not bear any relationto aparty's actual damages.

Front 4

Unintended consequences

Back 4

Resulting damages,produced by deliberate acts, that are greater inseverity than the insured intended.

Front 5

Parental liability

Back 5

Vicarious liabilityfor damages caused by a minor

Front 6

Business activity

Back 6

Considers continuity and a profit motive

Front 7

Loading and unloading

Back 7

Activities thathave coverage under either a business auto or a CGL policy depending on the circumstances