Los Angeles Claims Adjuster Property and Causality Practice Exam

Which of the following conditions is necessary for Coverage C to apply?

1. Injury must occur on unoccupied premises

2. Injury must be caused by an insured action

3. Injury must result from contractual obligation

4. Injury must result from a manufacturing defect

The correct answer is: Injury must be caused by an insured action

Coverage C, which typically pertains to personal liability in property and casualty insurance policies, requires that the injury or damage is caused by an action that falls under the responsibilities of the insured. This is essential because Coverage C is designed to provide protection against claims resulting from the insured's negligent actions or omissions which inadvertently cause harm to others. The premise of Coverage C revolves around the concepts of liability and negligence, meaning that an insured must have been engaged in a behavior or action that led directly to the injury or damage for coverage to apply. This underscores the principle of accountability—where insurance coverage is contingent upon the actions of the insured. While it is true that injuries can occur on unoccupied premises, arise from contractual obligations, or result from manufacturing defects, these scenarios do not inherently fulfill the conditions required for Coverage C. The key factor is that the injury must stem from an action taken by the insured, linking the event directly to their conduct and establishing their liability. This relationship ensures that the insured can be held accountable for the consequences of their actions, which is the foundation on which liability coverage operates in personal insurance policies.