Which of the Following Losses Is Generally Covered Under a Commercial

question 18

Multiple Choice

Which of the following losses is generally covered under a commercial umbrella policy?

• A)liability arising out of workers compensation laws
• B)liability arising out of pollution
• C)liability arising out of use of a business auto
• D)the cost of recalling defective products

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Price Increases

Occurs when the cost of goods or services rises over a period of time.

Demand for Good

Demand for good refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied, leading to market stability.