CAP Claims Processing & Investigation 5

Question 1

In a multi-vehicle accident with three at-fault parties, how does 'joint and several liability' affect the claimant's ability to recover?

Accepted Answer

The claimant can recover the full judgment amount from any single defendant

Answer

Under joint and several liability, each defendant is individually responsible for the entire judgment, allowing the claimant to collect fully from any defendant regardless of individual fault percentages.

Question 2

Coordination of benefits (COB) in health and disability claims is designed to ensure that:

Accepted Answer

Total benefits paid across all policies do not exceed the actual loss

Answer

COB rules prevent over-insurance windfalls by coordinating multiple policies so aggregate payments equal but do not exceed 100% of covered losses.

Question 3

A statute of limitations in insurance claims is most significant because it defines:

Accepted Answer

The deadline by which a claimant must file a lawsuit to enforce claim rights

Answer

The statute of limitations sets the outer boundary for filing suit; claims not litigated within this period are barred regardless of their underlying merit.

Question 4

During a catastrophe event with mass claim volume, which triage approach allows insurers to prioritize the most vulnerable claimants first?

Accepted Answer

Severity-based triage that prioritizes habitability and life-safety losses

Answer

Catastrophe protocols prioritize habitability losses—homes uninhabitable due to structural damage—because displaced families face the most immediate hardship.

Question 5

When reinsurance applies to a primary insurer's claim, the reinsurer's obligation to the original insured is best described as:

Accepted Answer

Indirect—the reinsurer reimburses the primary insurer, not the original claimant

Answer

Reinsurance is a contract between insurers; the original insured has no direct claim against the reinsurer—only the primary insurer can collect from its reinsurer.

(CAP) Certified Philanthropic Advisor Practice Test

(CAP) Certified Philanthropic Advisor Practice Test

CAP Claims Processing & Investigation 5