Which of the following statements regarding the Coverage E limit in the homeowners policy is true?
A) It is an aggregate limit, and once the amount paid for one or more claims reaches the limit, no additional coverage is provided.
B) The limit applies only if a court orders the insured to paythere is no coverage for settlements reached out-of-court.
C) Any legal defense costs incurred by the insurer are counted against the limit of liability.
D) The limit applies on a per-occurrence basis to bodily injury and property damage liability.
Question 2
Liability arising out of which of the following is covered under Coverage E of an unendorsed Homeowners 3 policy?
A) use of the insured's auto on a public road
B) use of the insured's golf cart at a golf course
C) use of the insured's motorcycle on a highway
D) use of the insured's 40-foot boat with a 200 horsepower engine
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