What method determines damages based on the percentage of negligence of each party involved in an accident?

Study for the Georgia Personal Lines Agent Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The method that determines damages based on the percentage of negligence of each party involved in an accident is referred to as comparative negligence. This legal doctrine allows a court to assign liability in proportion to the degree of fault each party bears in causing the accident.

Under comparative negligence, if both parties are found to be negligent, the damages awarded to the injured party will be reduced by their own percentage of fault. For example, if one party is deemed 70% at fault and the other 30%, the total damages would be adjusted so that the party found less at fault would receive a corresponding percentage of the damages based on their level of responsibility. This method promotes a fair allocation of damages that reflects the contributions of each party to the accident.

In contrast, contributory negligence completely bars recovery if the injured party had any negligence in the incident. Assumption of risk involves a situation where the injured party knowingly and willingly engages in activities that have inherent risks, thus limiting their ability to claim damages. Proximate cause refers to the primary cause that leads to the injury or damage but does not directly address the distribution of fault and damages among parties.

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