CAIA Liability and Negligence Principles 3

Question 1

Under negligent entrustment theory, a vehicle owner can be held liable when they allow an incompetent driver to use their vehicle. What must the claimant prove?

Accepted Answer

The owner knew or should have known the driver was incompetent or unlicensed

Answer

The owner was driving at the time of the accident

Answer

The vehicle had a mechanical defect

Answer

The driver was intoxicated at the time of the loan

Question 2

Which standard of care applies to a professional automotive technician who inspected a vehicle shortly before a brake failure accident?

Accepted Answer

The standard of a reasonably competent automotive technician

Answer

The standard of a reasonable child

Answer

The standard of an ordinary layperson

Answer

No standard applies because they are a third party

Question 3

A claimant alleges a driver ran a red light causing a collision, but no witnesses exist. The adjuster notes the driver has three prior red-light violations. How may these prior violations be relevant?

Accepted Answer

They may establish a pattern of negligent behavior or recklessness

Answer

They are irrelevant because each incident is separate

Answer

They automatically make the driver strictly liable

Answer

They shift the burden of proof to the insurer

Question 4

What distinguishes 'gross negligence' from ordinary negligence in the context of auto insurance claims?

Accepted Answer

Gross negligence involves a conscious, reckless disregard for others' safety

Answer

Gross negligence involves an intent to harm

Answer

Gross negligence only applies to commercial vehicles

Answer

Gross negligence requires physical injury only, not property damage

Question 5

When an adjuster applies the 'but for' test to evaluate causation, what question is being asked?

Accepted Answer

But for the defendant's negligent act, would the plaintiff's injury have occurred?

Answer

But for the plaintiff's negligence, would the defendant have acted?

Answer

But for the insurance policy, would the claim be valid?

Answer

But for the accident, would the parties have met?

Question 6

A driver causes an accident while experiencing a sudden, unforeseeable medical emergency (sudden incapacitation). How does this typically affect liability?

Accepted Answer

It may provide a complete defense if the incapacitation was truly unforeseeable

Answer

It creates strict liability for the driver

Answer

It doubles the driver's liability

Answer

It shifts liability to the vehicle manufacturer

Question 7

In a dram shop liability scenario involving an auto accident, who may be held liable in addition to the at-fault driver?

Accepted Answer

The establishment that served alcohol to the visibly intoxicated driver

Answer

The vehicle manufacturer

Answer

The road maintenance authority

Answer

The injured party's insurer