Alberto Has an HO-2 Contract with $100,000 of Liability Coverage

question 27

Multiple Choice

Alberto has an HO-2 contract with $100,000 of Liability Coverage. He is ordered by a judge to pay his neighbor $162,000 because of bodily injuries the neighbor suffered while he and Alberto were fishing in Alberto's old,undeclared 35 horse-power outboard motor boat. How will the contract respond?

• A)nothing is paid because liability arising out of this boat is excluded
• B)$61,500 is paid because of the deductible
• C)$62,000 is paid to the injured party
• D)$100,000 is paid to the neighbor

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Definitions:

Aggressive Responses

Behaviors that are initiated with the intent to harm or injure another person, either physically or psychologically.

Impulse Controls

The ability to resist or delay an impulse, drive, or temptation to act and involves self-regulation skills.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Response

A natural, automatic, and innate reaction to a stimulus that occurs without prior learning or conditioning.