When a Third Party Is at Fault in a Claim

question 73

True/False

When a third party is at fault in a claim, the best approach is always to refer the customer to that party to resolve the problem.

---

Definitions:

Underwriter

An underwriter is a person or entity that assesses and accepts the risk of another party, often in financial transactions or insurance, determining the terms of coverage or investment suitability.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Equity Capital

Money gathered by a firm in return for a stake in the company's ownership.

"Love Money"

Funds borrowed from family or friends to start a business, characteristically under flexible terms but carrying the risk of personal relationship strain.