New Enroll in RBI Grade B New Batch - Starts on May 21

    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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