19
QuizMultiple Choice

Insurance — Unit test

Question 19 • GA-GSE Personal Finance and Economics

What is the definition of liability?

Answer
A
the amount a consumer must pay after an incident before the insurance company starts paying
B
the monthly amount paid for insurance
C
intentionally destroying something in order to collect insurance
D
a responsibility to pay for or fix a problem

Explanation

A liability is a responsibility or legal obligation to pay for damage or fix a problem. Choice D gives this definition. Choice A describes a deductible, while choice B describes an insurance premium.

AI-written and checked against the verified answer.

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