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An insured operates a part-time eBay reselling business from her home and is sued when a buyer trips on her porch while picking up an item. Which umbrella provision MOST directly determines whether her personal umbrella will respond?
AThe personal-injury insuring agreement covering offenses such as libel, slander, defamation, and false imprisonment of others
BThe worldwide territorial provision governing where covered occurrences and lawsuits seeking damages may arise
The business-activities (business pursuits) exclusion barring liability arising out of the insured's business
DThe intentional-acts exclusion barring injury or damage expected or intended by the insured personally
Why this is the answer
The ISO personal umbrella mirrors the HO 00 03 Section II business-pursuits exclusion: liability arising out of an insured's business is not covered. eBay reselling that generates routine income is a business, and an injury to a buyer arriving to collect merchandise arises directly from that business. The umbrella will not respond, and because the HO will likewise exclude, no underlying coverage exists for the umbrella to sit above. See ISO DL 98 01 Business Activities Exclusion.
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