Question

    The person other than the insured or insurer who has

    incurred losses or is entitled to receive payment due to acts or omissions of the insured is called?
    A First Person Correct Answer Incorrect Answer
    B Second Person Correct Answer Incorrect Answer
    C Third Person Correct Answer Incorrect Answer
    D Last Person Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A third party is an individual or entity that is involved in a transaction but is not one of the principals and has a lesser interest. An example of a third party would be the escrow company in a real estate transaction that acts as a neutral agent collecting the documents and money that the buyer and seller exchange when completing the transaction. As another example, if a debtor owes a creditor a sum of money and hasn't been making the scheduled payments, the creditor is likely to hire a third party, a collection agency, to ensure that the debtor honours his agreement.

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