Hawaii Insurance Adjuster License Practice Exam

The term "comparative negligence" in an insurance context refers to the principle of allocating fault among the parties involved in an accident. This means that the degree of responsibility for the accident is assessed and attributed to each party involved, which can include the injured party as well as the defendant. Under this framework, if a claimant is found to have some level of fault in causing the accident, their recovery or damages awarded can be reduced by the percentage of their fault.

For instance, if a court determines that a claimant was 30% responsible for their injuries, their compensation would be reduced by that 30%. This system allows for a more equitable distribution of liability and recognizes that multiple parties can share responsibility for an incident.

Understanding this allows both insurers and policyholders to navigate claims and settlements more effectively, as it clarifies how damages will be calculated in accidents where degrees of fault are present. This is a fundamental concept in personal injury cases and liability disputes, emphasizing the importance of accurately assessing fault to determine compensation.