Alabama Insurance Adjuster Practice Exam

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Which type of liability insurance does Logan need for his small plane since he does not take passengers?

Bodily Injury liability
Passenger Bodily Injury Liability
Property Damage Liability
Bodily Injury Excluding Passengers

The correct answer is: Bodily Injury Excluding Passengers

The correct choice for Logan’s situation is the type of liability insurance that specifically provides coverage for bodily injury claims while excluding passengers. Given that Logan does not take passengers in his small plane, this option is tailored to meet his needs, focusing on potential claims for personal injuries to third parties rather than those related to passengers. This type of coverage is essential for any aircraft operator in the event that their aircraft causes personal injuries to other individuals or property damage, as there could still be instances where Logan encounters issues with people on the ground or other aircraft. Additionally, this option clarifies that it does not extend coverage to any passengers since Logan’s plane is not used in a capacity that transports people, thus ensuring he is not over-insured for risks that do not pertain to him. The focus is on managing liability while acknowledging the specific nature of his aircraft use. Other options, while relevant in broader contexts of aviation insurance, are not suited for Logan's specific circumstance where passenger considerations are not applicable.