Brett Johnson Owns a Home in Yukon,Oklahoma

question 4

Multiple Choice

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

• A)House and other structures
• B)Additional living expenses
• C)Personal property
• D)Personal liability
• E)Specialized coverage

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Definitions:

Identifiable Assets

Identifiable assets are company assets that can be separated from the entity, sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract.

Fair Value

The value likely to be obtained from disposing of an asset or the expense incurred in transferring a liability, within a structured exchange involving market entities at the time of assessment.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the identifiable assets and liabilities.

Liabilities Assumed

Obligations that a company takes on as part of a transaction, such as purchasing another company or assets.