CAIA - Certified Automotive Insurance Adjuster Liability and Negligence Principles Questions and Answers

Question 1

Which of the following is NOT an essential element that a claimant must prove to establish negligence in an automotive insurance claim?

Accepted Answer

Malicious intent on the part of the defendant.

Answer

A duty of care owed by the defendant to the claimant.

Answer

A breach of the duty of care by the defendant.

Answer

Damages or injuries sustained by the claimant as a direct result of the breach.

Question 2

An insured's vehicle is struck by a driver who ran a red light. The insured suffers a broken arm and incurs $15,000 in medical bills and $5,000 in lost wages. In this scenario, the medical bills and lost wages are classified as what type of damages?

Accepted Answer

Special damages

Answer

Punitive damages

Answer

General damages

Answer

Nominal damages

Question 3

Under the principle of vicarious liability in California, a vehicle owner lends their car to a friend. The friend negligently causes an accident, injuring another person. Which statement is most accurate regarding the owner's liability?

Accepted Answer

The owner can be held liable for a limited amount of damages because they gave permission to the driver.

Answer

The owner is automatically absolved of all liability because they were not driving.

Answer

The owner is solely responsible for all damages, and the driver has no liability.

Answer

The owner is only liable if they were a passenger in the vehicle at the time of the accident.

Question 4

In a personal injury claim, the 'proximate cause' is best defined as:

Accepted Answer

An act or omission that is a substantial factor in bringing about an injury and without which the injury would not have occurred.

Answer

The first event in a chain of events that leads to an injury.

Answer

Any action by the defendant, whether related to the injury or not.

Answer

The final action that occurs immediately before the injury is sustained.

Question 5

A pedestrian crosses the street mid-block without using a crosswalk and is struck by a speeding vehicle. The driver saw the pedestrian in time to stop but failed to do so. Which legal doctrine could allow the pedestrian to recover damages despite their own negligence?

Accepted Answer

Last Clear Chance Doctrine

Answer

Respondeat Superior

Answer

Assumption of Risk

Answer

Contributory Negligence

Question 6

A state follows a 'modified comparative negligence' (51% bar) rule. An insured is found to be 60% at fault for an accident, and the other driver is 40% at fault. The insured's total damages are $100,000. How much will the insured be able to recover from the other driver?

Accepted Answer

$0

Answer

$100,000

Answer

$60,000

Answer

$40,000