Kevin Has Three Liability Policies Which Provide for Contribution by Equal

question 27

Multiple Choice

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss.How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage,policy B provides $1,000,000 of coverage,and policy C provides $3,000,000 of coverage?

• A)Each policy will pay $500,000,and Kevin must pay the remaining $1,500,000.
• B)Policy A will pay $500,000,policies B and C will each pay $1,000,000,and Kevin must pay the remaining $500,000.
• C)Policy A will pay nothing,policy B will pay $1,000,000,and policy C will pay $2,000,000.
• D)Policy A will pay $500,000,policy B will pay $1,000,000,and policy C will pay $1,500,000.

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Definitions:

Limited Effects Theory

A communication theory suggesting that media's influence on people's attitudes and behavior is small and limited by individual differences, social categories, and personal relationships.

Media Messages

Information or content that is distributed to the public via various media channels, including news, entertainment, and advertising.

Certain Demographics

Specific groups of the population defined by age, gender, income level, or other attributes for targeted marketing or analysis.

Media Logic

A theory that suggests media determine the thought patterns, processes, and frameworks through which we perceive the world around us.