Personal Auto PolicyQuestion 382 of 474
After a covered accident the insured is arrested and bail is set at $500. Under the supplementary payments, the insurer pays:
a.Nothing, because bail is not an insured expense
b.$200, which is the daily loss-of-earnings figure
c.$500, because bail follows any covered accident
d.$250, the most payable toward a bail bond
Explanation
Supplementary payments include the cost of bail bonds required because of an accident covered by the policy, capped at $250, so the insurer funds $250 and the insured covers the remaining $250 of the $500 bail. The cap is a maximum, not a per-day figure. The $200 answer confuses the bail cap with the separate daily allowance for lost earnings.
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