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Omega Inc Purchased a Liability Insurance Policy from WorldWide Insurance

Question 59

Multiple Choice

Omega Inc purchased a liability insurance policy from WorldWide Insurance Ltd.Which of the following statements is most likely TRUE?


A) The insurance policy will protect WorldWide from liability in tort.
B) A liability insurance policy is important only if and when a person is held liable by a court.
C) The insurance policy will protect Omega only if Omega has a contract with at least one other party.
D) Omega probably purchased liability insurance because it was worried that it might not be able to collect full damages if it was hurt by a tortfeasor.
E) Despite issuing the liability insurance policy, WorldWide may not be required to pay damages on behalf of Omega if Omega committed a tort with the intention of deliberately hurting the victim, and if the insurance policy excludes coverage for such acts.

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