Omega Inc Purchased a Liability Insurance Policy from WorldWide Insurance

question 4

Multiple Choice

Omega Inc purchased a liability insurance policy from WorldWide Insurance Ltd.Which of the following statements may be TRUE?

• A)The insurance policy cannot 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 acted in a way that was not only tortious but also deliberate and intentional and such actions were excluded from coverage by the terms of the insurance policy.

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Definitions:

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean of the dataset.

Weighted Average Return

A return measure that considers the proportional relevance of each component return in the calculation.

Budget Line

A visual depiction of every possible pair of two products that can be bought given specific income levels and product prices.