Claims Adjuster Practice Exam

A multi peril or package policy is defined as a type of insurance policy that combines multiple types of coverage into one comprehensive package. This typically includes both property and liability coverage, which means that the policy protects the insured against a range of risks in one consolidated form. This functionality is beneficial for policyholders as it streamlines coverage, often resulting in cost savings and simplified management of their insurance needs.

This type of policy is particularly common in commercial insurance, where businesses can face various types of risks, including damage to property, liability in case of injury to third parties, and other exposures. By providing both property and liability coverage within a single policy, it allows businesses to safeguard against a wide spectrum of potential incidents.

In contrast, the other options do not fulfill the definition of a multi peril or package policy as they refer to specific types of insurance that cover only one aspect or area—such as personal auto insurance, worker's compensation, or property insurance alone. Thus, option B accurately captures the essence of a multi peril or package policy.