Helen and John Both Own Automobiles on Which They Carry

question 35

Multiple Choice

Helen and John both own automobiles on which they carry liability insurance.If Helen is negligent and has an accident while driving John's car with his permission,how will each insurer respond to any liability judgment against Helen?

• A)The insurers will pay the judgment on a pro rata basis.
• B)John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.
• C)Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.
• D)The policies will pay the judgment on the basis of contribution by equal shares.

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Definitions:

Sensation

The stimulation of sensory receptors and the transmission of sensory information to the central nervous system.

Perception

The process by which individuals interpret sensory information to give meaning to their environment.

Hypothesis

In psychology, a specific statement about behavior or mental processes that is tested through research.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.