Other Than Life (OTL) Practice Exam

Who is defined as a bailee in insurance terms?

1. Owns a certain amount of property

2. Posts bail to get one out of jail

3. Has someone else's property for safekeeping or repairs

4. Stores possessions with someone else

The correct answer is: Has someone else's property for safekeeping or repairs

In insurance terms, a bailee is defined as someone who has possession of another person's property for a specific purpose, often for safekeeping or repairs. This definition is integral to understanding the roles and responsibilities within the context of bailment in insurance practices. When a person (the bailor) entrusts their property to another person (the bailee), the bailee assumes a duty of care to protect that property while it is in their possession. This dynamic is central in various insurance scenarios, as it outlines how liability and risk are managed when property is temporarily transferred. The relationship usually implies that the bailee will take care of the property and may be held liable if it is damaged or lost due to their negligence. The other options do not accurately depict the role of a bailee in the context of insurance: owning property refers to the bailor; posting bail has no relation to property custody; storing possessions with someone else could describe a broader context that doesn't specifically capture the definition of a bailee with regard to a duty of care for safekeeping or repair.