Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The entitlement related to liability coverage under Section 3 is focused on legal defense and associated costs rather than out-of-pocket medical expenses. In typical liability coverage contexts, insured parties are often covered for legal fees and representation when dealing with claims made against them, particularly when pursuing recovery from at-fault third parties. This response aligns with the principles of liability coverage, which emphasize providing legal support in the event of a claim rather than covering immediate medical costs, which would typically fall under different types of insurance provisions.

Other options, although related to different aspects of liability and insurance coverage, do not accurately represent the primary entitlements under standard liability coverage principles. For example, coverage for property in care, custody, and control often involves specific exclusions, while absolute liability provisions may contain clauses that restrict coverage if terms of the contract are not met. This illustrates the fundamental nature of liability coverage as it pertains to legal costs associated with claims against the insured, reinforcing the significance of legal support in liability contexts.