CCP Liability Claims Management 3 — Questions and Answers
Question 1: A claimant files suit three years after an auto accident in a state with a two-year statute of limitations. What is the most likely outcome?
- The court will grant extra time if the injuries were serious
- The defendant will move to dismiss on statute of limitations grounds (Correct answer)
- The insurer must still settle regardless of the filing date
- The claimant may refile in a different state with a longer period
Correct answer: The defendant will move to dismiss on statute of limitations grounds
A complaint filed after the statute of limitations has expired is time-barred, and the defendant can assert the limitations period as an affirmative defense to seek dismissal.
Question 2: Under the doctrine of 'joint and several liability,' what can happen if one defendant in a multi-party lawsuit is insolvent?
- The claimant receives nothing from that portion of the judgment
- The remaining solvent defendants may be required to pay the entire judgment (Correct answer)
- The court reduces the verdict proportionally for all defendants
- The insurer for the insolvent defendant must still pay the full amount
Correct answer: The remaining solvent defendants may be required to pay the entire judgment
Joint and several liability allows the plaintiff to collect the entire judgment from any one of multiple defendants, regardless of that defendant's individual percentage of fault.
Question 3: What is the primary purpose of an independent medical examination (IME) in a liability claim?
- To treat the claimant's injuries at the insurer's expense
- To obtain an objective medical opinion on the nature, extent, and causation of the claimant's injuries (Correct answer)
- To establish the claimant's eligibility for workers' compensation benefits
- To negotiate a final settlement figure with the treating physician
Correct answer: To obtain an objective medical opinion on the nature, extent, and causation of the claimant's injuries
An IME provides the insurer with an independent physician's assessment of whether the claimed injuries are causally related to the accident and medically reasonable.
Question 4: Which of the following best describes 'pure comparative negligence'?
- A claimant who is 51% at fault recovers nothing
- A claimant's recovery is reduced by their percentage of fault regardless of how great that percentage is (Correct answer)
- Fault is not considered in determining the claimant's damages
- Each party pays only their proportionate share of damages
Correct answer: A claimant's recovery is reduced by their percentage of fault regardless of how great that percentage is
Pure comparative negligence allows a plaintiff to recover damages reduced by their own fault percentage, even if they are 99% responsible for the accident.
Question 5: A liquor store sells alcohol to a visibly intoxicated patron who then injures a third party in a car crash. Which legal theory may expose the liquor store to liability?
- Strict product liability
- Dram shop liability (Correct answer)
- Premises liability for off-premises acts
- Negligent entrustment
Correct answer: Dram shop liability
Dram shop laws impose liability on alcohol vendors who sell to visibly intoxicated persons or minors who subsequently cause harm to third parties.
Question 6: What does the 'collateral source rule' prevent in personal injury litigation?
- Defendants from introducing evidence that the plaintiff received compensation from independent sources such as health insurance (Correct answer)
- Plaintiffs from claiming more than their actual medical bills
- Insurers from seeking subrogation against third parties
- Attorneys from charging contingency fees exceeding 33%
Correct answer: Defendants from introducing evidence that the plaintiff received compensation from independent sources such as health insurance
The collateral source rule bars defendants from reducing their liability because the plaintiff received compensation from an independent third-party source like health insurance or sick pay.
Question 7: In evaluating a bodily injury claim, which factor most directly increases the 'severity' component of the reserve?
- Low policy limits
- A sympathetic plaintiff with permanent, disabling injuries (Correct answer)
- Jurisdiction with a mandatory arbitration program
- Short statute of limitations
Correct answer: A sympathetic plaintiff with permanent, disabling injuries
Reserve severity is driven by the potential verdict value, and a sympathetic plaintiff with documented permanent disability substantially increases jury award potential.
CCP Liability Claims Management 3
A claimant files suit three years after an auto accident in a state with a two-year statute of limitations.
What is the most likely outcome?