How will Jennifer's claim be settled if her sister Tina hits a llama worth $500?

In this scenario, if Jennifer's sister Tina hits a llama that is valued at $500, the claim would be settled under Jennifer's liability coverage because Tina, as the driver, would be considered responsible for the accident that caused damage to the llama.

Liability coverage is designed to pay for bodily injury and property damage that the insured (in this case, Jennifer) is legally obligated to pay as a result of an accident. Since the llama is likely classified as property, the $500 in damages would fall under this type of coverage.

In contrast, if the options were related to comprehensive coverage or deductibles, those would not apply here since the situation involves an accident caused by another party and liability rather than a loss due to non-collision factors (like theft or natural disasters) or property damage claims that require a deductible payment. Therefore, the claim would be appropriately settled through the liability coverage, which is why this answer is the correct choice.