CCP Liability Claims Management 2

Question 1

Under the 'occurrence' trigger theory of coverage, when does a general liability policy respond to a claim?

Accepted Answer

When the injury or damage actually occurred during the policy period

Answer

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.

Question 2

What is the primary purpose of a 'reservation of rights' letter in liability claims handling?

Accepted Answer

To notify the insured that the insurer is investigating while reserving the right to deny coverage later

Answer

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.

Question 3

Which doctrine holds that an employer can be held liable for the negligent acts of an employee committed within the scope of employment?

Accepted Answer

Respondeat superior

Answer

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.

Question 4

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?

Accepted Answer

The eggshell skull (thin skull) rule

Answer

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.

Question 5

In a bodily injury claim, which element of general damages is most difficult to quantify?

Accepted Answer

Pain and suffering

Answer

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.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Liability Claims Management 2