Alabama Insurance Adjuster Practice Exam

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Prepare for the Alabama Insurance Adjuster Test. Enhance your readiness with flashcards and multiple choice questions, complete with hints and explanations. Gear up for your exam!

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By accepting $10,000 from his insurance, how much can James sue Andrea for personal injury?

$2,000
$12,000
$10,000
$1,900

The correct answer is: $2,000

In personal injury cases, the concept of subrogation plays a significant role when determining how much can be sued for after an insurance payout. If James has accepted a $10,000 settlement from his insurance, it typically indicates that his damages were covered up to that amount, and he is not entitled to recover the same damages twice. To understand the amount James can pursue from Andrea, we need to consider the total damages incurred. If the total damages are higher than the insurance payment, the excess amount might be the target for legal claims. However, if he has received the insurance payment as full compensation, he can only sue for the remaining damages that were not covered. In this scenario, if we assume that his total claim was initially valued at $12,000 and he received $10,000, he can only pursue the remaining amount not covered by his insurance. Hence, if we take into account the amount already compensated, he may seek to recover the remaining balance of $2,000 from Andrea. Thus, by accepting the insurance payment, James effectively limits his claim to the outstanding amount, which is why the answer leads to him being able to sue Andrea for $2,000.