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Insurance · General

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

Correct answer

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

  1. A Comparing two defendants' negligence against each other
  2. B A system where the plaintiff's recovery is reduced by their percentage of fault for the accident
  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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