What Is the Purpose of the Extended Nonowned Liability Coverage

question 46

Multiple Choice

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?

• A)to provide liability coverage for an insured's employer when an insured uses his or her auto for business purposes
• B)to provide liability coverage for an insured who occasionally operates a nonowned auto
• C)to provide liability coverage for anyone who loans a covered auto to another driver
• D)to provide liability coverage for an insured who operates a nonowned auto on a regular basis

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Definitions:

Leisure

Time spent away from work and essential domestic activities, typically used for relaxation, recreation, or personal interests.

Economic Motives

The underlying reasons that guide individuals or entities to make decisions regarding the allocation of resources.

Disposable Income

This is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Consumption

refers to the total amount of goods and services bought and used by households and individuals.