Rhode Island Insurance Adjuster Exam

What is meant by strict liability?

1. A defense against negligence claims

2. Legal responsibility for damage or injury with no need to prove negligence

3. Liability only during work hours

4. Only applicable to intentional acts of injury

The correct answer is: Legal responsibility for damage or injury with no need to prove negligence

Strict liability refers to a legal standard that holds an individual or entity responsible for their actions or products, regardless of whether they were negligent. In the context of this definition, it means that a party can be held liable for damages or injuries caused by their actions or the products they manufacture or sell without the injured party having to prove that the party acted with negligence or did anything wrong. This is often applied in cases involving defective products or certain activities that are inherently dangerous. The focus of strict liability is on the nature of the activity or the condition of the product rather than the conduct of the defendant. For example, if a manufacturer produces a defective product that causes injuries, the injured party does not have to prove that the manufacturer was negligent in the production process; they only need to establish that the product was defective and caused the harm. Understanding this concept is crucial for someone studying to become an insurance adjuster, as it directly impacts how claims may be evaluated and pursued. It contrasts with negligence claims, where demonstrating that a party failed in their duty of care is imperative.