Which of the following statements regarding Section II coverage under the Homeowners 3 policy is true?

A) Medical payments to others are covered regardless of whether the insured is legally liable.

B) Legal defense costs incurred by the insurer to defend the insured reduce the per-occurrence limit of liability available.

C) The insurer is not required to defend the insured against a groundless, false, or fraudulent lawsuit.

D) Any amount paid under medical payments coverage reduces the personal liability limit available for the same claim.

Answer: A) Medical payments to others are covered regardless of whether the insured is legally liable.

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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The pro rata liability clause is designed to protect the principle of
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A domestic insurer issuing variable contracts must establish one or more
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In an insurance contract, the applicant's "consideration" is the
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
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Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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