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What is 'comparative negligence' and how does it affect a settlement?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

A system where the plaintiff's recovery is reduced by their percentage of fault for the accident

  1. A A system where the plaintiff's recovery is reduced by their percentage of fault for the accident
  2. B Comparing two defendants' negligence against each other
  3. C A system where any plaintiff fault bars all recovery
  4. D A system only used in commercial cases

Why this is the answer

Comparative negligence allows plaintiffs who are partially at fault to still recover — but their recovery is reduced by their percentage of fault. PURE comparative negligence: plaintiff can recover even if 99% at fault (recovery = damages × [1 - plaintiff's %]). MODIFIED comparative negligence: plaintiff can recover only if their fault is below a threshold (typically 50% or 51%). Example: $100,000 damages; plaintiff 30% at fault; recovery = $70,000 (pure) or $70,000 (modified, since 30% < 50%). Most states use modified comparative negligence.
Source: P&C Exam, Comparative Negligence

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About this topic: Casualty Insurance Basics

Casualty insurance basics cover the concept of legal liability, negligence and its elements, the types of damages, and how liability policies respond — including the duty to defend. This is one of 11 Casualty Insurance questions on casualty insurance basics, each with a full explanation on a single study page.

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