If a Liability Claim Arises Under Section II of a Homeowner's

question 50

Multiple Choice

If a liability claim arises under Section II of a homeowner's policy, the insurance company will pay for

• A) damages up to the policy limits.
• B) damages up to the policy limits plus the legal costs of defense.
• C) damages and legal costs up to the policy limit.
• D) damages beyond policy limits in certain cases.

---

Definitions:

Account Category

A way to organize various types of accounts in accounting, such as assets, liabilities, equity, revenue, and expenses, based on their nature.

Subsidiary Ledger

A detailed ledger that contains all the transactions of a particular account, which then summarizes into a single general ledger account.

Accounts Receivable

Represents money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Financial Statement

A documented summary of financial transactions and standing for a company, person, or alternative entity.