Liability Claims Management Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Liability Claims Management flashcards as text
Under the 'occurrence' trigger theory of coverage, when does a general liability policy respond to a claim?
Answer: When the injury or damage actually occurred during the policy period
The occurrence trigger attaches coverage to the policy in force at the time the bodily injury or property damage actually took place, regardless of when the claim is reported.
What is the primary purpose of a 'reservation of rights' letter in liability claims handling?
Answer: To notify the insured that the insurer is investigating while reserving the right to deny coverage later
A reservation of rights letter allows the insurer to defend the insured while preserving its right to deny coverage if investigation reveals a policy exclusion applies.
Which doctrine holds that an employer can be held liable for the negligent acts of an employee committed within the scope of employment?
Answer: Respondeat superior
Respondeat superior ('let the master answer') imputes an employee's negligence to the employer when the act occurs within the scope and course of employment.
A claimant suffers a broken leg in a slip-and-fall but had a pre-existing bone disease that made the fracture worse. Which damages rule most benefits the claimant?
Answer: The eggshell skull (thin skull) rule
The eggshell skull rule requires the tortfeasor to take the victim as found, meaning full liability applies even when a pre-existing condition magnified the harm.
In a bodily injury claim, which element of general damages is most difficult to quantify?
Answer: Pain and suffering
Pain and suffering lacks an objective price tag and must be estimated through jury instructions, per diem arguments, or multiplier methods, making it highly subjective.
What does 'subrogation' allow an insurer to do after paying a first-party property damage claim?
Answer: Step into the insured's shoes to recover payment from the at-fault third party
Subrogation gives the insurer the legal right to pursue the responsible third party for reimbursement of amounts the insurer paid to its own insured.
Which type of liability policy endorsement eliminates coverage for bodily injury or property damage expected or intended from the standpoint of the insured?
Answer: Expected or intended injury exclusion
The expected or intended injury exclusion removes coverage for harm that the insured deliberately caused or knew was substantially certain to result from their actions.