CCA CCA Liability and Subrogation 3

Question 1

In a third-party liability claim, who is the 'third party'?

Accepted Answer

The injured person making a claim against the insured

Answer

The insurance company

Answer

The policyholder who purchased the coverage

Answer

The reinsurance company

Question 2

What is 'assumption of risk' as a defense in liability claims?

Accepted Answer

The plaintiff knowingly accepted the danger that led to their injury

Answer

The defendant assumed responsibility for all damages voluntarily

Answer

The insurer assumed the insured's liability without investigation

Answer

The court assumed negligence without direct evidence

Question 3

What is the primary purpose of a reservation of rights letter?

Accepted Answer

To notify the insured that coverage may be limited while the insurer investigates

Answer

To deny a claim outright and close the file

Answer

To demand payment of premiums before processing a claim

Answer

To transfer the claim to a different insurer

Question 4

Which statute of limitations period typically applies to personal injury liability claims in most US states?

Accepted Answer

2–3 years

Answer

6 months

Answer

1 year

Answer

10 years

Question 5

What is 'last clear chance' in negligence law?

Accepted Answer

A doctrine allowing a plaintiff to recover despite their own negligence if the defendant had a final opportunity to avoid the harm

Answer

The final settlement offer before trial

Answer

The insurer's last option to deny coverage

Answer

A rule requiring mediation before litigation

Question 6

An adjuster discovers that a third-party claimant's injuries were partly caused by a pre-existing condition. How should this affect the claim evaluation?

Accepted Answer

The insured is liable only for the aggravation or worsening of the pre-existing condition

Answer

The claim should be denied entirely

Answer

The pre-existing condition is irrelevant and full damages apply

Answer

The claimant must provide proof of the pre-existing condition before any payment