Which of the Following Statements Regarding Section II Coverage Under

question 20

Multiple Choice

Which of the following statements regarding Section II coverage under the Homeowners 3 policy is true?

• A)Medical payments to others are covered regardless of whether the insured is legally liable.
• B)Legal defense costs incurred by the insurer to defend the insured reduce the per-occurrence limit of liability available.
• C)The insurer is not required to defend the insured against a groundless,false,or fraudulent lawsuit.
• D)Any amount paid under medical payments coverage reduces the personal liability limit available for the same claim.

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Definitions:

Supply Chain

The network of all entities involved in producing and delivering a product or service to the consumer, including suppliers, manufacturers, and retailers.

Allocation

The process of distributing resources or items to specific areas, activities, or tasks based on a plan or system.

Bullwhip Effect

A phenomenon where fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Trade Promotions

Marketing activities intended to increase demand for products by offering incentives to retailers and distributors.