Claims Adjuster Academy Chapter 3 Demo

Negligence is a failure to do what a reasonable and prudent person would do under given circumstances and it is one of the most commonly insured perils. Negligence may consist of an act or a failure to act. For negligent liability to exist, four elements must be present: • Legal duty

• Standard of care • Proximate cause • Actual loss or damage

Defenses Even when negligence is proven, legal defenses exist which could possibly eliminate or reduce a person’s legal liability.

Assumption of risk If someone understands a danger and voluntarily assumes the risk, a court may disallow recovery against a negligent party. Contributory Negligence Contributory negligence is a common law defense that denies recovery to an injured party who contributed to the loss by failing to meet standards required for self-protection. Comparative Negligence More than two-thirds of the states have adopted a less harsh version of contributory negligence known as comparative negligence . Where this is in effect, it is a statutory defense against negligence. Generally, the defense of comparative negligence reduces injury and damage awards proportionally when the plaintiff and defendant were both negligent. Intervening Cause When an independent action breaks the chain of causation and sets in motion a new chain of events, this intervening cause becomes the proximate cause and may also serve as a defense against liability. Statute of Limitations