Which of the Following Liability Risks Would Be Adequately Managed

question 49

Multiple Choice

Which of the following liability risks would be adequately managed by errors and omissions insurance?

• A) liabilities arising from performance of obligations of corporate directors and officers
• B) liabilities arising from negligence in the provision of professional services
• C) insured's portion of the loss that is insured against out of his/her own assets
• D) cost of environmental cleanup of the insured's property arising from business activities

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Definitions:

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.

Court Action

Legal proceedings initiated in a court of law where a plaintiff brings a lawsuit against a defendant.