CCA CCA Liability and Subrogation 3

Question 1

In a third-party liability claim, who is the 'third party'?

Accepted Answer

The injured person making a claim against the insured

Answer

In a third-party claim, the injured claimant (not the insured) makes a demand against the insured's liability policy.

Question 2

What is 'assumption of risk' as a defense in liability claims?

Accepted Answer

The plaintiff knowingly accepted the danger that led to their injury

Answer

Assumption of risk is a defense arguing that the plaintiff voluntarily encountered a known danger, potentially reducing or barring recovery.

Question 3

What is the primary purpose of a reservation of rights letter?

Accepted Answer

To notify the insured that coverage may be limited while the insurer investigates

Answer

A reservation of rights letter allows the insurer to investigate and defend a claim while preserving its right to later deny coverage based on policy exclusions.

Question 4

Which statute of limitations period typically applies to personal injury liability claims in most US states?

Accepted Answer

2–3 years

Answer

Most US states set a 2 to 3 year statute of limitations for personal injury claims, though it varies by jurisdiction.

Question 5

What is 'last clear chance' in negligence law?

Accepted Answer

A doctrine allowing a plaintiff to recover despite their own negligence if the defendant had a final opportunity to avoid the harm

Answer

Last clear chance allows a negligent plaintiff to recover if the defendant had the final opportunity to prevent the injury but failed to act.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA CCA Liability and Subrogation 3