Property and Casualty Insurance Practice Exam

Which legal concept allows an employee to assume the risks associated with their job?

1. Informed Consent

2. Assumption of Risk

3. Negligence Clause

4. Employer Liability

The correct answer is: Assumption of Risk

The correct answer is the concept of Assumption of Risk. This legal principle holds that when employees take a job, they acknowledge and accept the inherent risks that come with their specific duties. In essence, by choosing to engage in certain activities or roles, employees are deemed to understand the potential dangers involved and voluntarily agree to bear those risks. For instance, in certain jobs that involve physical labor or hazardous activities, employees may face obvious risks such as injuries or accidents. If an employee is injured while participating in these activities, the Assumption of Risk doctrine may limit the employer's liability, as it shows that the employee was aware of and accepted those risks. In contrast, concepts like Informed Consent generally apply to situations where an individual must be provided with adequate information before making a decision, particularly in the context of medical procedures or treatment options. Negligence Clause refers to a provision that may limit liability for acts of negligence, whereas Employer Liability involves the responsibilities an employer has towards their employees regarding safety and working conditions. These concepts do not encompass the specific notion that employees willingly accept the risks associated with their work.