West Virginia Adjusters Practice Exam

What type of policy would typically include liability coverage?

1. Health insurance policy

2. Property insurance policy

3. Auto insurance policy

4. Life insurance policy

The correct answer is: Auto insurance policy

A policy that typically includes liability coverage is the auto insurance policy. Auto insurance is specifically designed to provide coverage for various risks associated with operating a vehicle, including liability coverage, which protects policyholders against legal responsibility for bodily injury and property damage resulting from automobile accidents. Liability coverage within an auto insurance policy ensures that if the insured is found legally responsible for injuring another person or damaging their property while operating their vehicle, the insurance will cover the costs associated with those claims. This includes legal defense costs, medical expenses for the injured party, and repairs for damaged property, up to the limits specified in the policy. In contrast, health insurance primarily provides coverage for medical expenses; property insurance typically focuses on protecting personal or commercial property from loss or damage; and life insurance pays out benefits upon the death of the insured, offering no liability coverage. Thus, the auto insurance policy is the clear choice for including liability coverage.