Casualty Insurance Basics
Liability foundation
Negligence requires duty, breach, causation, and damages. A liability policy has declarations, an insuring agreement, supplementary payments, exclusions, and conditions. Distinguish occurrence from claims-made triggers (with retroactive dates and extended reporting periods), and per-occurrence limits from the general aggregate, products-completed operations aggregate, and the personal and advertising injury limit.
Coverage parts to recognize
Commercial general liability covers bodily injury, property damage, and personal and advertising injury (which is not bodily injury). Medical payments is no-fault, requires no negligence, and does not erode liability limits. In auto, the personal auto policy has Part A liability, Part B medical payments, Part C uninsured/underinsured motorist, and Part D collision and other-than-collision. California requires UM at limits equal to the liability limits unless the insured waives in writing, but does not mandate UIM. Minimum financial responsibility limits are 15/30/5.
Legal doctrines tested
California follows pure comparative negligence (a claimant recovers reduced by their own fault, even above 50%) and, after Proposition 51, limits joint and several liability for non-economic damages to each defendant's proportion of fault. Workers compensation is an exclusive remedy providing no-fault benefits.
Traps
Do not let a question treat supplementary payments as inside the limit - they are paid in addition. Do not offset medical payments by health insurance. Read claims-made questions for the retroactive date. Punitive damages are generally not covered.
Worked example
A 15/30/5 policy, two claimants. A's damages are $25,000 and B's are $5,000. A collects the $15,000 per-person cap, B collects $5,000; total $20,000, comfortably within the $30,000 per-occurrence limit.