OOC:
Valid question, we're all learning the system after all!
Damage equal to more than a hit point's location can mean various things, to a leg or arm the limb becomes useless but no risk to life. To the abdomen the victim will bleed to death in 10 minutes without first aid. To the chest (as in this case) the victim will cough blood and bleed to death in ten minutes. To the head, it's a knockout and death in 5 minutes without treatment. In this case, Dazarim took 9 damage to the chest, after armour that's 7, so more hp than he has on the chest. In this case, Dazarim has lost consciousness but can still be saved by First Aid or magical healing.
Resurrection is also possible after death, followers of Chalana Arroy may have access to this powerful magic. A temple would charge whatever the adventurer's Ransom stat is to do the job and must be within 7 days, after which the soul has travelled to the Court of Silence, gateway to the afterlife.