CALA Liability Claims Investigation 2 — Questions and Answers
Question 1: When investigating a slip-and-fall claim, which document is most critical to obtain from the business owner?
- Prior incident reports for the same location (Correct answer)
- Employee vacation schedules
- Annual profit and loss statements
- Marketing brochures for the business
Correct answer: Prior incident reports for the same location
Prior incident reports reveal whether the hazard was a known, recurring condition, which directly impacts notice and negligence analysis.
Question 2: A claimant alleges injuries from a dog bite. Which defense doctrine could bar recovery if the claimant provoked the animal?
- Assumption of risk
- Contributory negligence
- Comparative fault
- Provocation doctrine (Correct answer)
Correct answer: Provocation doctrine
Many states apply the provocation doctrine as a complete defense in dog bite cases when the victim's actions caused the animal to react.
Question 3: During a liability investigation, an adjuster discovers the insured made post-accident repairs to the hazardous condition. How should this be handled?
- Document it as evidence of negligence
- Preserve evidence of the repair but note it may be inadmissible under subsequent remedial measures rule (Correct answer)
- Ignore it as irrelevant to the claim
- Report it to the state insurance department
Correct answer: Preserve evidence of the repair but note it may be inadmissible under subsequent remedial measures rule
Federal Rule of Evidence 407 generally bars subsequent remedial measures as proof of negligence, but the adjuster must still document and preserve the evidence.
Question 4: What is the primary purpose of obtaining a recorded statement from an adverse claimant early in the investigation?
- To use the statement as a signed release
- To lock in the claimant's version of events before memories fade or stories change (Correct answer)
- To determine the claimant's credit score
- To establish the insured's coverage limits
Correct answer: To lock in the claimant's version of events before memories fade or stories change
Early recorded statements capture the claimant's account while details are fresh and can be used to identify inconsistencies if the story later changes.
Question 5: An adjuster is investigating an auto liability claim where the at-fault driver was operating a vehicle owned by their employer. Which doctrine extends liability to the employer?
- Res ipsa loquitur
- Respondeat superior (Correct answer)
- Strict liability
- Collateral source rule
Correct answer: Respondeat superior
Respondeat superior holds employers vicariously liable for torts committed by employees acting within the scope of their employment.
Question 6: When evaluating a liability claim involving a minor claimant, which special consideration applies to the statute of limitations?
- The statute begins running at the time of the accident regardless of age
- The statute is typically tolled until the minor reaches the age of majority (Correct answer)
- Minors have a shorter statute of limitations than adults
- No statute of limitations applies to minor claimants
Correct answer: The statute is typically tolled until the minor reaches the age of majority
Most states toll (pause) the statute of limitations for minors, meaning the clock typically begins running when the child turns 18.
Question 7: What does 'indemnity' mean in the context of liability insurance?
- The insurer's right to deny all claims
- Restoring the insured to their pre-loss financial position by paying covered damages (Correct answer)
- A penalty assessed against a claimant who files a fraudulent claim
- The transfer of the insured's rights to the insurer
Correct answer: Restoring the insured to their pre-loss financial position by paying covered damages
Indemnity is the fundamental insurance principle of restoring the insured (or injured party) to their financial position before the loss occurred.
CALA Liability Claims Investigation 2
When investigating a slip-and-fall claim, which document is most critical to obtain from the business owner?