Asked by Amanda Swaney on Jun 23, 2024
Verified
When an insurer agrees to pay a sum of money to a third party in exchange for the third party giving up his or her legal right to pursue litigation against the insured,this is called a(n) ________.
A) settlement
B) reservation of rights
C) declaratory judgment
D) indemnification
Settlement
An agreement reached by parties in a lawsuit before the case goes to trial or a final judgment is issued.
Litigation
The process of taking legal action or engaging in a lawsuit to resolve disputes between parties.
Legal Right
Entitlements or permissions under the law that can be enforced or recognized by legal institutions.
- Comprehend the judicial foundations that necessitate insurers to offer defense and indemnification for the insured.
- Understand the importance of liability policies and their operation in practical situations.
Verified Answer
WB
Writers BoardJun 29, 2024
Final Answer :
A
Explanation :
Settlements involve the payment of an agreed upon sum of money to the third party in exchange for the third party giving up his or her legal right to pursue litigation against the insured.
Learning Objectives
- Comprehend the judicial foundations that necessitate insurers to offer defense and indemnification for the insured.
- Understand the importance of liability policies and their operation in practical situations.
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