Which of the following statements about the personal liability coverage (Coverage E) of an unendorsed homeowners policy is true?

A) Coverage is written on an accident basis.
B) Coverage is provided for bodily injury liability.
C) Coverage is provided for business and professional liability.
D) Coverage is provided for personal injury liability.


Answer: B

Business

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 Raw MaterialsBal7,000(2)24,000(1)19,000  Work In ProcessBal11,000(7)?(2)15,000  (4)18,000  (6)31,000      Finished GoodsBal18,000  (7)62,000   15,000  Manufacturing Overhead(2)9,000(6)31,000(3)16,000  (4)8,000  (5)5,000      Accumulated Depreciation--Factory  Bal82,000  (3)16,000    Sales Salaries Expense(4)11,000      Accounts Payable  Bal   (1)19,000  (5)5,000    Salaries and Wages Payable  Bal7,000  (4)37,000      The manufacturing overhead applied is:

A. $38,000 B. $24,000 C. $42,000 D. $31,000

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A valid contract can legally be voided by either party.

Answer the following statement true (T) or false (F)

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Wages paid by an employer to an employee who is the employer's child under age 18 are not subject to federal FICA and unemployment taxes.

Answer the following statement true (T) or false (F)

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