Property and Casualty Insurance Practice Exam

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What is one possible consequence of negligence?

Preventing all future accidents
Financial compensation only for property damage
Liability for actual injuries sustained
Legal penalties only for gross negligence

The correct answer is: Liability for actual injuries sustained

One significant consequence of negligence is liability for actual injuries sustained. When a party is found to be negligent, meaning they failed to exercise the level of care that a reasonably prudent person would have in similar circumstances, they can be held legally responsible for any injuries or damages that result from their actions. This can include physical injuries to individuals or harm to their property that arises directly from the negligent behavior. Financial compensation awarded in such cases aims to restore the injured party to the position they were in before the accident occurred, covering medical expenses, lost wages, and other damages. It's important to recognize that negligence does not restrict recovery to just property damage; it encompasses the broader spectrum of personal injury as well. In contrast, preventing all future accidents is not a direct consequence of negligence; instead, it reflects a goal within the safety and loss control fields. Financial compensation only for property damage does not fully encompass the potential ramifications of negligence, as it overlooks personal injury claims. Legal penalties for gross negligence are specific to more severe cases and do not cover the broader standard of negligence that exists in many incidents.