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    Question

    What is the liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible?

    A Contingent Beneficiary Correct Answer Incorrect Answer
    B Contingent Liability Correct Answer Incorrect Answer
    C Contractual Liability Correct Answer Incorrect Answer
    D Convertible Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Coverage for losses to a third party for which the insured is vicariously liable. Contingent liability can be assumed—for example, for losses arising from product or service failure, where the insurer has assumed liability by providing a performance warranty.

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