Liability Coverage – P&C License Exam Flashcards

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Liability is a legal obligation to pay damages to another party due to bodily injury, property damage, or personal injury caused by the insured's negligence or wrongful acts.

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Occurrence-based policies cover claims arising from incidents that happen during the policy period, while claims-made policies cover claims that are first reported during the policy period.

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Coverage A provides protection for bodily injury and property damage liability arising from the insured's business operations.

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Coverage B provides personal and advertising injury liability, covering offenses such as libel, slander, false arrest, and copyright infringement in advertisements.

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Coverage C provides medical payments to persons injured on the insured's premises or due to the insured's operations, regardless of fault or legal liability.