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You drink 5 beers to celebrate the end of your risk management and insurance class, then have an accident while driving home from the bar. The police charge you with drunk driving, and with hitting another automobile from behind. What will your automobile insurer do when you file a claim for the damage to your car, and, what will it do when the injured people in the other car file claims to have their bodily injuries paid for? A. The insurer will pay all the claims B. Nothing. The insurer does not have to pay any of these claims C. The insurer will pay the liability claims, but not the damages to your car, because of the fact that you were drunk D. The insurer will say, “Who are you? Nobody here remembers selling you a policy.”

The exclusion of flood in a homeowners policy is an example of A. Excluded peril Excluded property Excluded activity Excluded condition

A. Excluded peril

B. Excluded property

C. Excluded activity

D. Excluded condition

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