CCP Liability Claims Management

Question 1

What is the difference between comparative and contributory negligence in liability claims?

Accepted Answer

Comparative reduces damages proportionally; contributory bars recovery if claimant is even 1% at fault

Answer

They are identical legal concepts

Answer

Comparative only applies to commercial claims

Answer

Contributory negligence has been abolished in all U.S. states

Question 2

What are the essential elements a claimant must prove in a negligence claim?

Accepted Answer

Duty of care, breach of duty, causation, and damages

Answer

Intent, motive, opportunity, and damages

Answer

Warranty, product defect, and injury

Answer

Criminal intent and property damage

Question 3

What is subrogation in insurance claims?

Accepted Answer

The insurer's right to pursue recovery from the at-fault party after paying the insured's claim

Answer

The process of canceling an insurance policy

Answer

A type of insurance fraud investigation

Answer

The insured's right to sue their own insurance company

Question 4

What is a reservation of rights letter?

Accepted Answer

A notice from the insurer that it will investigate a claim but may not be obligated to provide coverage

Answer

A letter reserving a conference room for a claims meeting

Answer

A policyholder's request to add coverage

Answer

A court order requiring the insurer to pay a claim

Question 5

What is the statute of limitations and why is it critical in claims management?

Accepted Answer

A legal deadline for filing a lawsuit, after which the claim is permanently barred

Answer

A limit on the amount of money that can be awarded

Answer

A regulation governing insurance premium amounts

Answer

A requirement for annual policy renewals

Question 6

What is bodily injury liability coverage?

Accepted Answer

Insurance that covers the policyholder's legal responsibility for injuries caused to others

Answer

Insurance that covers the policyholder's own medical bills

Answer

Coverage for damage to the policyholder's vehicle

Answer

Life insurance coverage through an auto policy