TORTS  The law of torts determines whether a loss that befalls one person should or should not be shifted to another person.  No liability  strict liability  fault liability  We must ask ourselves: does the law adequately serve the needs of the community in the 21c?  Thus we must view the law of torts in its social context  A’s knowledge that B is insured removes the risk of B’s inability to pay and encourages litigation in the areas where liability insurance is common – thus A will not be deterred from suing; however A will be up against an experienced insurer, unequal bargaining power  3rd party insurance: the insurer promises to indemnify the insured against liability to pay money to persons who are not party to the contract of insurance  1st party insurance: insurer promises to pay if a particular loss occurs