CCP Liability Claims Management 1

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

Comparative negligence reduces the claimant's recovery by their percentage of fault, while contributory negligence (still used in a few states) completely bars recovery if the claimant bears any fault.

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

A negligence claim requires proving that the defendant owed a duty of care, breached that duty, the breach caused the injury (causation), and the claimant suffered actual damages.

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

Subrogation allows an insurance company that has paid a claim to step into the insured's shoes and seek reimbursement from the party that caused the loss.

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 reservation of rights letter notifies the insured that the insurer is investigating the claim but reserves the right to deny coverage if the loss falls outside the policy terms.

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

The statute of limitations sets the maximum time after an event within which legal proceedings may be initiated. Missing this deadline permanently bars the claim.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Liability Claims Management 1