When an Insurer Agrees to Pay a Sum of Money

question 67

Multiple Choice

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

---

Definitions:

Organizational Growth

The process through which a business expands its size, scope, or capabilities, often measured in terms of increased output, sales, or market share.

Entrepreneur

An individual who starts and runs a business, taking on financial risks with the aim of making a profit.

Matrix Structure

An organizational configuration that combines elements of both functional and divisional structures, allowing for flexibility and efficient resource utilization by having employees report to multiple managers.

Functional Managers

Managers responsible for specific business functions that provide guidance and resources to ensure organizational goals are met.