Final answer:
The establishment of legal liability does not necessarily require a court decision; while court cases can result in liability being legally determined, out-of-court settlements or agreements can also establish liability.
Step-by-step explanation:
The question asks which of the listed options is not necessary for establishing d) legal liability. Legal liability typically requires that a person failed to act as a reasonable person would (negligence), their negligence was the cause of an occurrence (proximate cause), and that there was resulting injury or damage (damages). The exception to these requirements is the option that legal liability needs to be established in court. While many liability claims do end up in court, the actual establishment of liability can be agreed upon or settled out of court, and therefore, is not a necessary condition for liability to exist. Examples can illustrate the principle of moral hazard, where insured individuals or entities might engage in riskier behaviour knowing they have insurance coverage, such as being less cautious about safety measures or preventative actions. The concept of moral hazard and imperfect information in the insurance industry reflects the challenges insurers face when estimating risks and individuals' decisions post-insurance purchase, which are not always predictable.