Which of the Following Is True Regarding Whether the Insureds

question 44

Multiple Choice

Which of the following is true regarding whether the insureds in the "Case Opener" were entitled to insurance coverage for imported toxic Chinese drywall used in their home?

• A) The court ruled that the insureds were entitled to coverage for both property damage and personal injury based on their insurance company's warranties.
• B) The court ruled that the insureds were entitled to property damage coverage because of their insurance company's warranties, but not coverage for personal injuries.
• C) The court ruled that the insureds were entitled to coverage for personal injuries because of their insurance company's warranties, but not coverage for property damage.
• D) The court ruled that the insureds were entitled to full coverage only if they could establish that the insurer knew of the drywall problems when it issued the policy.
• E) The court ruled that the insureds were not entitled to coverage.

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Definitions:

Note Receivable

A financial asset representing a written promise to receive a specific sum of money at a future date.

Other Receivables

Financial claims against entities other than customers, which might include tax refunds, interest due, and insurance claims.

Noncurrent Assets

Noncurrent assets are long-term assets that are not expected to be converted into cash or used up within one year, including property, plant, and equipment.

Current Assets

Cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business.