← All traps
MisconceptionObserved in bank

Insurance Payments Always Reduce Damages

This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”

Subject distribution

  • Torts1

Example wrong choices

  • 20496_loaves_prop_cart · TORTS · Choice ADenied, because the payment from Lydia’s insurer was not made after any court decided that Daniel was liable.

    Why it's attractive

    The student sees the right result, denial, and accepts the first plausible reason attached to it. The breaker is that judicial determination is not the source-identity switch.

    Why it's wrong

    The choice gives the right outcome but rests on judicial determination, not payment source.

    Spot it next time

    Ask: court determination or payment source?

  • 20496_loaves_prop_cart · TORTS · Choice BGranted, because Daniel is entitled to partial indemnity.

    Why it's attractive

    The student recognizes partial indemnity as a serious tort-allocation phrase. The breaker is that indemnity belongs to common-liability actors, not plaintiff-side insurance.

    Why it's wrong

    The choice imports partial indemnity from the joint-tortfeasor allocation frame.

    Spot it next time

    Reserve indemnity/contribution for common-liability actors.

  • 20496_loaves_prop_cart · TORTS · Choice DGranted, because Lydia should not be allowed to recover twice for the same medical expenses.

    Why it's attractive

    The student wants to prevent a double recovery and follows common-sense fairness. The breaker is the collateral-source Gold Key: plaintiff-side insurance does not reduce the tortfeasor's judgment.

    Why it's wrong

    The choice uses double-recovery fairness language that the collateral-source rule defeats.

    Spot it next time

    Plaintiff-side insurance is collateral.

Practice the questions that use this trap as a distractor and get full Wrong Answer Forensics on submit.

Practice questions using this trap →
Insurance Payments Always Reduce Damages — Trap Taxonomy | BarMatrix