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All of the following are true about liability, except: A.Breach of contract is not considered an act of negligence B.A loss may take place over a period of time rather than all at once C.The burden of proof is on the injured party to prove that the other party was negligent D.Liability policies pay costs incurred by an insured to sue negligent third parties
All of the following are true about liability, except: A.Breach of contract is not considered an act of negligence B.A loss may take place over a period of time rather than all at once C.The burden of proof is on the injured party to prove that the other party was negligent D.Liability policies pay costs incurred by an insured to sue negligent third parties
Final answer:The statement 'Liability policies pay costs incurred by an insured to sue negligent third parties' is not typically true. Liability insurance usually covers the legal responsibility for damages caused to others, but doesn't generally cover the policyholder's litigation costs. An example is a negligent car manufacturer whose faulty vehicle causes accidents.Explanation:All of the statements connected with liability in the question are indeed true, except for: 'Liability policies pay costs incurred by an insured to sue negligent third parties.' In reality,liability insurancetypically concerns itself with the policyholder’s legal responsibility for damages caused to other people. However, these policies don't typically cover the expenses of the insured party suingthird parties. An example is an automobile manufacturer knowingly selling a defective model. If accidents occur due to these known defects, the company could be held liable for neglecting to take steps to prevent the risk. Thus, their role in this instance is comparable to the concept of the'moral hazard'in insurance. That’s when those covered are less motivated to save costs as they know they are insured. This illustrates how important risk management and ethical conduct are both at an individual andcorporate level.Learn more aboutLiability Insurancehere:brainly.com/question/31855869#SPJ11...