Which of the Following Losses Would Be Covered Under a Commercial

question 35

Multiple Choice

Which of the following losses would be covered under a Commercial General Liability Policy that has no endorsements?
I.The named insured rented a building and an employee of the named insured negligently started a fire at the rented building.
II.The cost to recall defective products

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

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate of tax applied to their highest level of income.

Progressive Rate

A tax system in which the tax rate increases as the taxable income increases.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer’s total income.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a specified tax period.