CCA CCA Liability and Subrogation 2

Question 1

What is the 'made whole' doctrine in subrogation?

Accepted Answer

The insured must be fully compensated before the insurer can recover subrogation proceeds

Answer

The made whole doctrine prevents the insurer from recovering subrogation proceeds until the insured has been fully indemnified for their total loss.

Question 2

Which party bears the burden of proof in most civil liability claims in the US?

Accepted Answer

The plaintiff, by a preponderance of the evidence

Answer

Civil liability claims require the plaintiff to prove their case by a preponderance of the evidence, meaning more likely true than not.

Question 3

What does 'indemnification' mean in a liability context?

Accepted Answer

Restoring the injured party to their pre-loss financial position

Answer

Indemnification is the principle of making the injured party whole again financially, without profit or penalty.

Question 4

An employer is typically vicariously liable for employee negligence when the employee is:

Accepted Answer

Acting within the scope of employment

Answer

Employers are generally held vicariously liable only when the employee's negligent act occurs within the scope of their employment duties.

Question 5

What is a 'letter of protection' sometimes used in liability claims?

Accepted Answer

An agreement where a medical provider defers billing until a settlement

Answer

A letter of protection is an agreement between a claimant's attorney and a healthcare provider to delay billing until the personal injury case is resolved.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA CCA Liability and Subrogation 2