What amount has James waived the right to sue Andrea for after accepting his insurance payment?

Prepare for the Mississippi Adjuster License Exam. Study with comprehensive flashcards and multiple choice questions, each equipped with hints and explanations to ensure exam readiness!

In the context of insurance claims, when a policyholder accepts a payment from their insurance company, they often sign a release that waives their right to pursue further legal action against the insurer or any third party related to that claim. This means that by accepting the payment, James has agreed not to sue Andrea for the damages covered by that payment.

In this scenario, if the amount James accepted is $2,000, it indicates that this sum represents the total damages or loss he asserted in his claim with the insurance company. By accepting this payment, he waives his right to seek additional compensation from Andrea for the same incident. This principle is rooted in the legal concept of "accord and satisfaction," where an agreement is reached between parties to resolve a dispute.

The amounts listed in the other choices suggest other potential damages or claims, but since James specifically accepted the $2,000 payment, that is the amount associated with his waiver of the right to sue Andrea. Thus, he cannot go back and claim more money from her regarding the matters related to that specific insurance incident after accepting the payment.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy