Asked by Griffin Skubish on Jun 12, 2024

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Which of the following is an accurate statement about liability insurance policies?

A) They cover bodily injury or property damage that result from the insured's business or professional pursuits.
B) They typically provide the insured with coverage for punitive damages liability he may face.
C) They typically do not provide the insured with coverage for the consequences stemming from his negligent acts.
D) They may be used by the insured as a way of transferring risks associated with certain tort liability he may face.

Liability Insurance Policies

Insurance policies that provide coverage to the insured against claims resulting from injuries and damage to other people or property.

Tort Liability

Legal responsibility for damages caused by a breach in duty of care in civil law, excluding breaches of contract.

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for egregious wrongdoing and deter similar behavior.

  • Acquire knowledge about the different categories of insurance and their intended functions.
  • Comprehend the role and functionality of liability policies in actual environments.
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MC
Melisa ClaroJun 13, 2024
Final Answer :
D
Explanation :
Liability insurance provides the insured the ability to transfer liability risks to the insurer.