Omega Inc Purchased a Liability Insurance Policy from WorldWide Insurance

question 32

Multiple Choice

Omega Inc purchased a liability insurance policy from WorldWide Insurance Ltd.Which of the following statements is most likely TRUE?

• A)The insurance policy will protect WorldWide from liability in tort.
• B)A liability insurance policy is important only if and when a person is held liable by a court.
• C)The insurance policy will protect Omega only if Omega has a contract with at least one other party.
• D)Omega probably purchased liability insurance because it was worried that it might not be able to collect full damages if it was hurt by a tortfeasor.
• E)Despite issuing the liability insurance policy, WorldWide may not be required to pay damages on behalf of Omega if Omega committed a tort with the intention of deliberately hurting the victim, and if the insurance policy excludes coverage for such acts.

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Definitions:

Short-term Securities

Securities that typically mature in one year or less, often used for investment with lower risk and short-duration goals.

Zero Balance Accounts

Bank accounts that automatically maintain a zero balance by moving funds from a master account in an amount only large enough to cover checks presented.

Master Account

A primary account that is used to manage multiple sub-accounts under a single umbrella, often for purposes of consolidation and easier management.

Same Day Value

A banking term indicating that a fund transfer or transaction will be credited or debited with its value dated the same day the instruction is received.