Casualty Actuarial Society (CAS) Practice Exam

Is Max's employer likely liable for the accident caused by Max on his detour?

1. Yes, he was on duty

2. No, he deviated from the route

3. Yes, he was driving for business

4. No, it was a personal trip

The correct answer is: No, he deviated from the route

In assessing the situation regarding Max's employer's potential liability for the accident, it's essential to consider the concept of "scope of employment." Generally, an employer can be held liable for the actions of an employee if the employee is acting within the scope of their employment when the incident occurs. In this case, the key factor is that Max took a detour. The term "detour" implies that he deviated from the route that would be considered ordinary or necessary for his work duties. When an employee is on a personal detour for reasons unrelated to work, they may be considered to have stepped outside the scope of their employment. This is crucial because if the employee is not performing work-related duties when an accident occurs, the employer typically cannot be held liable. Therefore, since Max deviated from his work-related route and was not engaged in business activities during the detour, the reasoning suggests that the employer is less likely to be liable for the accident, affirming the rationale behind the position of limited employer responsibility in such circumstances.