Louisiana P&C Adjuster Practice Exam

In a state that follows the doctrine of Comparative Negligence, what happens to a settlement amount if Ed's negligence is considered?

1. The settlement amount remains unchanged

2. The settlement amount will be doubled

3. The settlement amount will be increased by Ed's negligence percentage

4. The settlement amount will be reduced by the percentage of Ed's negligence

The correct answer is: The settlement amount will be reduced by the percentage of Ed's negligence

In states that adhere to the doctrine of Comparative Negligence, a plaintiff's recovery in a personal injury case is adjusted based on their percentage of fault in causing the accident. This means that if Ed is found to be partially responsible for the incident that led to the claim, the settlement amount he is entitled to will be reduced by his share of the negligence. For instance, if a jury determines that Ed was 20% at fault for the incident, and the total damages awarded were $100,000, the settlement amount would be decreased by that 20%. Therefore, Ed would only receive $80,000. This system ensures that individuals are only held financially responsible for the proportion of their negligence, promoting fairness in settlements. Understanding this principle is crucial for adjusters, as it directly influences the negotiation and final settlement amounts in cases involving shared liability. Thus, acknowledging Ed's negligence effectively affects the settlement by reducing the total amount based on his determined percentage of fault.