Vocab "FLF Strategy"

Vocabulary Words

Anchoring (FLF Strategy): Initial reserve amount set by an adjuster influences future claim assessments. Low initial reserves can lead to insufficient funds, while high reserves prepare for more significant settlements. Understanding anchoring is crucial to accurate financial management in handling claims.
Attractive Nuisance Doctrine: Property owners are liable for injuries to children attracted to hazardous property conditions (e.g., swimming pools, trampolines). This heightened responsibility applies even if children are trespassing.
Bad Faith: Intentional refusal to fulfil contractual obligations (e.g., unreasonably denying or delaying a claim, failing to investigate properly). This is a violation of the insurer's duty to deal fairly with policyholders.
Duty of Care: Legal obligation to maintain a reasonable level of care to avoid harming others. Central in personal injury and property liability cases.
Emotional Distress: Mental suffering resulting from trauma (a type of non-economic damage).
Burden of Proof on the Plaintiff: The injured party is responsible for providing evidence establishing the defendant's actions caused the injury.
Expert Witness: Provides specialized knowledge in legal proceedings.
Foreseeability: Ability to anticipate potential harm resulting from actions. Crucial in negligence cases to determine if a defendant should have anticipated and prevented risks.
Legal Basis: Underlying legal foundation or justification for a claim.

Legal Basis Examples

Liability (Why a Person is at Fault): Legal framework that establishes fault.
Litigation: Legal process of taking a case to court.
Made Whole Doctrine: Ensures injured parties are fully compensated for losses (medical, lost wages, etc.) before other parties (like insurers).
Negligence: Failure to exercise reasonable care leading to harm. Can be a legal basis for a personal injury claim.
Spoilation of Evidence: Intentional, reckless, or negligent destruction, alteration, or concealment of relevant evidence in a legal proceeding. This can lead to serious consequences in court.
Standard of Care: Defined benchmark for cautiousness in a given situation. Used to evaluate if someone acted responsibly to prevent harm.

Negligence

Legal Basis: Personal injury claims can be based on negligence if the plaintiff demonstrates a duty of care was owed, breached, and caused harm.
Example (Car Accident): A driver running a red light causing an accident could be held liable due to negligence.

Strict Liability

Legal Basis: Defendants can be responsible for injuries regardless of intent or negligence, particularly in cases involving inherently dangerous activities, defective products, or animal attacks.
Example (California Dog Bites): Owners are strictly liable for damages if their dog bites a person, regardless of prior behavior or knowledge.

Premises Liability

Legal Basis: Property owners are responsible for injuries occurring on their property if they fail to maintain safe conditions.
Example (Slip and Fall): If a customer slips in a store due to a wet floor without a warning sign, a premises liability claim might be valid.

Product Liability

Legal Basis: Plaintiffs can recover damages from products proven defective or dangerous. Manufacturers, distributors, and retailers might be deemed strictly liable.
Example (Malfunctioning Airbag): A person injured by a malfunctioning airbag could file a product liability claim against the manufacturer.

Intentional Torts

Legal Basis: Wrongful acts performed with intent (e.g., assault, battery) that cause harm. Claims may arise from intentional actions if intent is demonstrated.
Example (Assault and Battery): A person punched during an altercation could file a claim based on battery.

Wrongful Death

Legal Basis: Surviving family members can file a claim if a person dies due to another's negligence, recklessness, or intentional act.
Example (Drunk Driver): Family members could file a wrongful death claim if a loved one dies in a car accident due to a drunk driver.

Vicarious Liability

Legal Basis: One party is held responsible for the actions of another (e.g., employers responsible for actions of employees).
Example (Delivery Driver Accident): An injured party might hold the delivery driver's employer liable for a crash if the driver was on duty.

Negligent Infliction of Emotional Distress

Legal Basis: Claims for emotional harm can be made even without physical injury if caused by another party's negligence.
Example (Witnessing a Serious Injury): A person witnessing a loved one's injury due to someone else's negligence might have a claim.

Reasonably and Responsibly

Definition: Actions that are prudent, cautious, with consideration for potential consequences. In legal and professional situations, it represents a standard that a reasonable person would meet under similar circumstances.