Admitted Liability is:

Admitted Liability is:

• A. Requires a legal action for injuries
• B. None of the above
• C. Applicable to passengers carried for hire
• D. Not applicable to passengers carried for hire

Answer: (D)

Admitted liability means the insurer publicly acknowledges that its insured is legally responsible for the injuries, which can allow a claim to be settled without a lawsuit. This idea is most about third‑party claims where fault can be admitted to speed resolution. When the claim involves passengers carried for hire, the liability framework changes because the passenger’s claim is against the carrier under specific common‑carrier rules and coverage. In this context, an upfront admission of fault by the insurer is not how these claims are typically handled; liability is determined through the carrier’s regulatory and legal framework and the facts proven, not by a preemptive admission. So admitted liability does not apply to passengers carried for hire.

Admitted liability means the insurer publicly acknowledges that its insured is legally responsible for the injuries, which can allow a claim to be settled without a lawsuit. This idea is most about third‑party claims where fault can be admitted to speed resolution. When the claim involves passengers carried for hire, the liability framework changes because the passenger’s claim is against the carrier under specific common‑carrier rules and coverage. In this context, an upfront admission of fault by the insurer is not how these claims are typically handled; liability is determined through the carrier’s regulatory and legal framework and the facts proven, not by a preemptive admission. So admitted liability does not apply to passengers carried for hire.