In the Context of Insurance, the Term Liability Is Used

question 37

True/False

In the context of insurance, the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

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Definitions:

Third Party

An individual or group aside from the two primarily involved in a situation, often providing services, intervening, or affected by the actions of the main parties.

Original Parties

The entities or individuals who enter into a contract or legal agreement initially, before any assignments or transfers.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and possibly seek compensation for damages.

Exemption Clause

A contractual term that limits one party's liability for breach of contract, negligence, or other unforeseen circumstances.