What term refers to the duty owed by one person to another in an insurance context?

The term that refers to the duty owed by one person to another in an insurance context is indeed "degree of care." This concept encapsulates the expectations of how an individual or an entity should act toward others, particularly in terms of the precautions they should take to avoid causing harm. In the realm of insurance, recognizing the degree of care required can determine whether a party has fulfilled their obligations and whether an insurance claim should be honored based on whether the duty was met.

For instance, in professional liability insurance, the degree of care refers to the standard of care that a professional is required to uphold, which is often judged against what a reasonable professional in the same field would do. If they fail in this duty and cause harm as a result, it may lead to a claim of negligence, which is a failure to meet the required degree of care.

Understanding the concept of degree of care is crucial for adjusters as it aids in assessing claims and understanding the responsibilities both the insured and the insurer hold in the process.