Chapter 23 RSM Exam | Questions with 100%
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (47)
Personal liability insurance Personal liability insurance protects the named
insured and family members against legal liability
arising out of their personal acts. If the insured is
found legally liable for bodily injury or property
damage, the insurer will pay damages up to the
policy limit and also provide legal defense.
:contentReference[oaicite:1]{index=1}
Location of personal liability Personal liability insurance is provided in Section II
coverage in homeowners policy of the homeowners policy, which focuses on
liability protection rather than property coverage.
:contentReference[oaicite:2]{index=2}
Coverage E - Personal liability Coverage E protects the insured when a claim or
lawsuit is brought alleging bodily injury or property
damage caused by the insured's negligence. It is
broad in scope and based on legal liability
principles. :contentReference[oaicite:3]{index=3}
Per-occurrence limit The liability coverage under Coverage E applies on
a per-occurrence basis, meaning the insurer will
pay up to the policy limit for all damages arising
out of a single occurrence.
:contentReference[oaicite:4]{index=4}
, Definition of occurrence An occurrence is defined as an accident that
results in bodily injury or property damage during
the policy period. :contentReference[oaicite:5]
{index=5}
Defense obligation under Coverage The insurer must provide a legal defense for the
E insured even if the claim or lawsuit is groundless,
false, or fraudulent. :contentReference[oaicite:6]
{index=6}
Coverage F - Medical payments to Coverage F is a mini-accident policy within the
others homeowners policy that pays medical expenses for
others injured, regardless of legal liability.
:contentReference[oaicite:7]{index=7}
No-fault nature of Coverage F Medical payments to others are paid without
regard to fault, meaning the injured person does
not need to prove negligence to receive benefits.
:contentReference[oaicite:8]{index=8}
When Coverage F applies Coverage F applies when a person is accidentally
injured on an insured location or is injured by the
activities of an insured, a resident employee, or an
animal owned by or in the care of an insured.
:contentReference[oaicite:9]{index=9}
Difference between Coverage E and Coverage E is based on legal liability and requires
Coverage F negligence, while Coverage F pays medical
expenses regardless of fault and is limited in scope
and amount. :contentReference[oaicite:10]
{index=10}
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (47)
Personal liability insurance Personal liability insurance protects the named
insured and family members against legal liability
arising out of their personal acts. If the insured is
found legally liable for bodily injury or property
damage, the insurer will pay damages up to the
policy limit and also provide legal defense.
:contentReference[oaicite:1]{index=1}
Location of personal liability Personal liability insurance is provided in Section II
coverage in homeowners policy of the homeowners policy, which focuses on
liability protection rather than property coverage.
:contentReference[oaicite:2]{index=2}
Coverage E - Personal liability Coverage E protects the insured when a claim or
lawsuit is brought alleging bodily injury or property
damage caused by the insured's negligence. It is
broad in scope and based on legal liability
principles. :contentReference[oaicite:3]{index=3}
Per-occurrence limit The liability coverage under Coverage E applies on
a per-occurrence basis, meaning the insurer will
pay up to the policy limit for all damages arising
out of a single occurrence.
:contentReference[oaicite:4]{index=4}
, Definition of occurrence An occurrence is defined as an accident that
results in bodily injury or property damage during
the policy period. :contentReference[oaicite:5]
{index=5}
Defense obligation under Coverage The insurer must provide a legal defense for the
E insured even if the claim or lawsuit is groundless,
false, or fraudulent. :contentReference[oaicite:6]
{index=6}
Coverage F - Medical payments to Coverage F is a mini-accident policy within the
others homeowners policy that pays medical expenses for
others injured, regardless of legal liability.
:contentReference[oaicite:7]{index=7}
No-fault nature of Coverage F Medical payments to others are paid without
regard to fault, meaning the injured person does
not need to prove negligence to receive benefits.
:contentReference[oaicite:8]{index=8}
When Coverage F applies Coverage F applies when a person is accidentally
injured on an insured location or is injured by the
activities of an insured, a resident employee, or an
animal owned by or in the care of an insured.
:contentReference[oaicite:9]{index=9}
Difference between Coverage E and Coverage E is based on legal liability and requires
Coverage F negligence, while Coverage F pays medical
expenses regardless of fault and is limited in scope
and amount. :contentReference[oaicite:10]
{index=10}
