What principle is violated when an insured does not exercise care toward another person's property?

The correct answer is based on the concept of negligence, which refers to the failure to exercise the level of care that a reasonably prudent person would in similar circumstances. When an insured does not take care regarding another person's property, this inattention or lack of due diligence can lead to damage or loss, which illustrates negligence.

Negligence is fundamental in liability policies, as it establishes when one party is held liable for causing harm to another through careless behavior. In this context, negligence focuses on failure to act responsibly, thereby resulting in harm to another entity's property. This principle is critical in determining liability in various insurance situations, where the insured's actions—or lack thereof—could lead to resulting claims from affected parties.

The other options pertain to different concepts within insurance and liability. Absolute liability relates to situations where liability is assigned regardless of fault or negligence, usually in cases involving inherently dangerous activities. Liability losses encompass the broader category of losses for which a party can be held responsible, but it does not focus specifically on the failure to exercise care. Punitive damages are not a principle of negligence, but rather a form of compensation awarded in some legal cases intended to punish the wrongdoer and deter future misconduct. Thus, negligence is the specific principle involved