Which of the Following Situations Would Be Covered Under the Liability

question 58

Multiple Choice

Which of the following situations would be covered under the liability section of the PAP?
I.A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured's auto.
II.The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Delivery Cycle Time

The total time taken from receiving a customer order to the delivery of the product, indicating the efficiency of the production and delivery system.

Manufacturing Cycle Efficiency

A performance metric that measures the efficiency of the production process by dividing the value-added time by the total cycle time.

Queue Time

The total time that a product or job spends waiting in line to be processed at various stages of production.

Quality Cost Report

A document detailing the expenses incurred from preventing defects, appraising the quality of products, and any costs arising from products failing to meet quality standards.