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:

Affirms

To state something as true, to assert strongly and publicly.

Priority

The status established by order of importance or urgency.

Kohlberg's Moral Development

A theory proposing that moral reasoning, the basis for ethical behavior, has six identifiable developmental stages, each more adequate at responding to moral dilemmas than its predecessor.

Excessive Force

The use of force greater than what is necessary to achieve a legitimate law enforcement objective or to maintain control.