Which of the following best defines 'negligence' in insurance terms?

Negligence, in the context of insurance and legal terms, is defined as the failure to act with reasonable care, which leads to harm or injury to another party. This principle hinges on the idea that individuals and entities have a duty to exercise a standard level of care that a reasonable person would under similar circumstances.

When a person or organization does not uphold this duty and their actions (or inactions) result in damage or injury, they can be found negligent. This concept is critical within the insurance field, particularly when determining liability or claims arising from accidents or incidents. For instance, if a driver fails to stop at a red light and causes an accident, that driver may be found negligent because they did not exercise reasonable care that would have prevented harm.

The other options describe different concepts: failing to perform under a contract relates to breach of contract, intentional conduct points to willful actions rather than failures to act, and natural disasters are typically categorized under acts of God, which do not involve negligence. Therefore, the definition of negligence as the failure to act with reasonable care is particularly foundational to understanding liability and claims in personal lines insurance.