West Virginia Adjusters Practice Exam

Which type of coverage pertains to expenses associated with legal defense in liability cases?

1. Health coverage

2. Property coverage

3. Liability coverage

4. Life coverage

The correct answer is: Liability coverage

The appropriate coverage that pertains to expenses associated with legal defense in liability cases is indeed liability coverage. Liability coverage is designed to protect individuals or businesses against claims resulting from injuries and damage to people or property. This type of coverage not only provides financial protection for damages that an insured party is liable for but also typically extends to covering legal expenses incurred while defending against such claims. This can include attorney fees, court costs, and any settlements that might occur as a result of litigation. Health coverage is primarily related to medical expenses for individuals' health care needs, while property coverage deals with damage to or loss of physical property. Life coverage, on the other hand, provides financial benefits to beneficiaries upon the death of the insured and does not pertain to legal defense expenses. Therefore, the focus of liability coverage on legal defense costs makes it the correct choice in this context.