All of the Following Statements About Liability Coverage Under the Businessowners

question 26

Multiple Choice

All of the following statements about liability coverage under the businessowners policy are true EXCEPT

• A)Liability arising out of personal and advertising injury is covered as part of the insuring agreement.
• B)Medical payments coverage is provided.
• C)Employees acting within the scope of their employment are excluded from coverage.
• D)Coverage is included for the legal costs of defending the insured.

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Definitions:

Normal Good

A good for which demand increases as the income of an individual increases, holding other factors constant.

Engel Curve

A graphical representation that shows the relationship between a consumer's income and their expenditure on a particular good, illustrating how consumption changes with income.

Utility Function

A representation of how consumer preferences over a set of goods and services are ordered, indicating the level of satisfaction derived from different bundles of goods.

Consumption

The action or process of using up goods and services, typically by households.