Liability Claims Management Flashcards
6 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Liability Claims Management flashcards as text
What is the difference between comparative and contributory negligence in liability claims?
Answer: Comparative reduces damages proportionally; contributory bars recovery if claimant is even 1% at fault
Comparative negligence reduces the claimant's recovery by their percentage of fault, while contributory negligence (still used in a few states) completely bars recovery if the claimant bears any fault.
What are the essential elements a claimant must prove in a negligence claim?
Answer: Duty of care, breach of duty, causation, and damages
A negligence claim requires proving that the defendant owed a duty of care, breached that duty, the breach caused the injury (causation), and the claimant suffered actual damages.
What is subrogation in insurance claims?
Answer: The insurer's right to pursue recovery from the at-fault party after paying the insured's claim
Subrogation allows an insurance company that has paid a claim to step into the insured's shoes and seek reimbursement from the party that caused the loss.
What is a reservation of rights letter?
Answer: A notice from the insurer that it will investigate a claim but may not be obligated to provide coverage
A reservation of rights letter notifies the insured that the insurer is investigating the claim but reserves the right to deny coverage if the loss falls outside the policy terms.
What is the statute of limitations and why is it critical in claims management?
Answer: A legal deadline for filing a lawsuit, after which the claim is permanently barred
The statute of limitations sets the maximum time after an event within which legal proceedings may be initiated. Missing this deadline permanently bars the claim.
What is bodily injury liability coverage?
Answer: Insurance that covers the policyholder's legal responsibility for injuries caused to others
Bodily injury liability coverage pays for injuries the policyholder causes to other people, including medical expenses, lost wages, pain and suffering, and legal defense costs.