1. Why is insurance based on the concept of indemnity? insurance is a form of gambling. Do you agree? how does an insurable interest in life insurance differ from property insurance? what are some relationships other than ownership that can create an insurable interest? How does subrogation support the concept of indemnity?
2. How does strict liability differ from absolute liability? Discuss several defenses used by manufacturers.
3. Describe the four parts of a negligence act. Distinguish between the degree of care owed trespassers, licensees, and invitees. What is the justification for different degrees of care? Explain the type of liability hazards to which an FBO is exposed?
4. Give some examples of liability arising out of contracts. What is a bailment?