Which of the Following Losses Is Most Likely to Be

question 36

Multiple Choice

Which of the following losses is most likely to be covered under your auto liability insurance?

• A)a legal bill incurred by your insurer defending you from a claim related to an accident caused by your negligence.
• B)a medical bill for your injuries related to an accident that you caused.
• C)a medical bill for injuries to a passenger in your car arising from an accident in which you were not at fault.
• D)an auto shop bill for repairs of a car you own due to an accident caused by your negligence.
• E)an auto repair bill for repairs to the car of a driver who negligently caused an accident with you.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses, culminating in a net profit or loss over a specific period.

Other than Temporary

A designation for impairments or losses that are expected to be permanent or long-lasting rather than temporary fluctuations.

Available-for-sale

A classification for financial assets implying that they can be sold in the future, but are not held primarily for trading purposes.

Investment Portfolio

A collection of investments held by an individual or institution which may include stocks, bonds, real estate, and other financial assets.