British Columbia Fundamentals Of Insurance (FOI) Practice Test

Under a liability policy, a key requirement for the insured is to act in a manner that protects the interests of the insurer while managing a claim. Providing prompt notification of any accident allows the insurer to assess risks and respond appropriately. Forwarding legal papers to the insurer ensures they can respond to claims in a timely manner, which is essential for a proper defense. Assisting in the investigation or defense of a claim helps the insurer gather evidence and build a case, strongly aligning with the contractual obligation of the insured to support the insurer's interests.

On the other hand, making voluntary payments to satisfy the plaintiff is not a requirement under most liability policies. This action could potentially compromise the insurer's ability to negotiate or defend against a claim, as it might be seen as an admission of liability or could set precedents for future claims. Thus, while it may be a generous action on the part of the insured, it is not a mandated requirement outlined in the policy terms.