If an Insured Is Using His/her Own Private Passenger Car

question 16

Essay

If an insured is using his/her own private passenger car under normal circumstances, in what situations can the insured lose legal liability coverage?

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Definitions:

Entities Under Common Control

Business entities that are directly or indirectly controlled by the same party or parties, typically characterized by shared management or ownership.

Single Customer

Refers to a business situation where a significant portion of a company's revenue comes from sales to one customer.

Intragroup Merchandising Transactions

Transactions occurring between entities within the same group, often involving the sale and purchase of goods.

Unrealised Profits

Profits that have been earned on paper through an increase in value of assets but have not been realized through a transaction.