An insurance trade association is concerned about the tarnished image of the insurance business and wants to do something about it. Probably the best thing the association can do is to ensure that its members set an ethical example in their actions and their words.

Donna Dove is injured when her vehicle is struck by a truck that is insured under a business auto policy that provides liability coverage for damages due to bodily injury. One of the following would not fall under the policy's definition of bodily injury: Donna suffered mental trauma and anguish as a result of being in the accident.

Bernard's Bowling and Billiards has a standard commercial property policy with an 80 percent coinsurance provision. The limit of insurance on the building is the same as its estimated value: $1 million. However, the owner of Bernard's feels that there is no need for a $1 million limit of insurance, since the sprinkler system should put out any fire quickly. To save premium, he wants to drop the limit of insurance on the building from $1 million down to $100,000. You would advise that The limit of insurance is not relevant to coinsurance compliance.

Ozzie and Harriet have a homeowners policy insuring their $1 million home with a personal liability limit of $250,000. Guests are inspecting antique furniture in the attic when the weight causes the floor to collapse. $250,000 is the maximum liability amount that is payable in this loss for injury to the guests.

The out of state coverage provision would apply in: While driving his insured vehicle, Charles has an accident in a state that requires higher liability limits than he has on his PAP.