CCA CCA Liability and Subrogation 1 — Questions and Answers
Question 1: What is subrogation in the context of insurance claims?
- The insurer's right to pursue a third party that caused an insurance loss (Correct answer)
- The process of canceling a policy after a claim
- A method of splitting claim payments between parties
- The insured's right to appeal a denied claim
Correct answer: The insurer's right to pursue a third party that caused an insurance loss
Subrogation allows an insurer that has paid a loss to step into the insured's shoes and recover that payment from the responsible third party.
Question 2: Which doctrine holds that a plaintiff who is even slightly at fault cannot recover damages from a defendant?
- Comparative negligence
- Contributory negligence (Correct answer)
- Strict liability
- Vicarious liability
Correct answer: Contributory negligence
Under contributory negligence, any fault by the plaintiff — no matter how small — completely bars recovery from the defendant.
Question 3: Under pure comparative negligence, how is a claimant's recovery affected if they are 30% at fault?
- They cannot recover at all
- Their recovery is reduced by 30% (Correct answer)
- Their recovery is reduced by 70%
- Their recovery is unaffected
Correct answer: Their recovery is reduced by 30%
Pure comparative negligence reduces the plaintiff's damages award by their own percentage of fault.
Question 4: What is 'vicarious liability'?
- Liability imposed on one party for the negligent acts of another (Correct answer)
- Liability arising from a defective product
- Strict liability for ultrahazardous activities
- Liability assumed under a written contract
Correct answer: Liability imposed on one party for the negligent acts of another
Vicarious liability holds one party (such as an employer) legally responsible for the acts of another (such as an employee) based on their relationship.
Question 5: Which element is NOT required to establish negligence in a liability claim?
- Duty of care
- Breach of duty
- Proximate cause
- Intent to harm (Correct answer)
Correct answer: Intent to harm
Negligence requires duty, breach, causation, and damages — intent to harm is an element of intentional torts, not negligence.
Question 6: A subrogation waiver in a contract means the insurer:
- Can still pursue the third party after paying a claim
- Gives up its right to recover from the third party (Correct answer)
- Must obtain consent before filing suit
- Is required to split recovery with the insured
Correct answer: Gives up its right to recover from the third party
When a policyholder agrees to a subrogation waiver, the insurer relinquishes its right to recover from the responsible third party after paying the claim.
CCA CCA Liability and Subrogation 1
What is subrogation in the context of insurance claims?