All of the Following Statements About Liability Coverage Under the Businessowners

question 26

Multiple Choice

All of the following statements about liability coverage under the businessowners policy are true EXCEPT

• A)Liability arising out of personal and advertising injury is covered as part of the insuring agreement.
• B)Medical payments coverage is provided.
• C)Employees acting within the scope of their employment are excluded from coverage.
• D)Coverage is included for the legal costs of defending the insured.

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Definitions:

Marginal-Utility Schedules

Charts or tables showing the relationship between the quantity of a good consumed and the marginal utility or satisfaction received from consuming each additional unit.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from consuming goods and services, given their income and prices of goods.

Satisfaction Per Dollar

A measure of the utility or happiness a consumer gains per unit of expenditure.

MUₐ /Pₐ

The ratio of marginal utility (MUₐ) to the price (Pₐ) of an item, often used in consumer choice theory to evaluate optimal consumption.