Question 113

Coverage E-Personal Liability applies to defense costs if a lawsuit is filed against you.

Coverage E-Personal Liability provides financial protection for the insured in the event that they are sued for damages arising from personal injuries or property damage. This includes coverage for defense costs associated with lawsuits filed against the insured.

A) expected or intended injury

This option is incorrect because Coverage E specifically excludes coverage for injuries or damages that are expected or intended by the insured. Personal liability coverage is designed to protect against unintentional harm, not deliberate actions.

B) defense costs if a lawsuit is filed against you

This option is correct as Coverage E-Personal Liability does cover defense costs incurred when a lawsuit is filed against the insured for personal liability claims. It ensures that the insured is financially supported in legal proceedings related to covered incidents.

C) motor vehicle liability involving a vehicle registered for use on public roads

This option is incorrect since motor vehicle liability is generally covered under a separate auto insurance policy, not under a mobile home policy. Coverage E does not extend to liabilities arising from the use of vehicles registered for public use.

D) watercraft owned by an insured and rented to others

This option is incorrect because personal liability coverage typically does not extend to watercraft that are rented to others. Coverage for watercraft is often subject to its own specific provisions and exclusions.

Conclusion

The correct answer, B, highlights that Coverage E-Personal Liability is designed to provide defense costs when lawsuits arise from personal liability claims, ensuring legal protection for the insured. Other options fail to meet the criteria of Coverage E, either due to exclusions or because they fall under different types of insurance policies.