Beyond the damages themselves, the Section II additional coverage for claim expenses pays:
Explanation
Claim expenses take in the cost of defending a suit, court costs taxed against the insured, interest accruing on a judgment, and the insured's reasonable expenses in helping with the defense, including lost earnings up to the amount the form states. Criminal fines are a penalty, not damages an insurer may fund. Wages lost by the injured claimant are part of the damages personal liability may owe, not a claim expense.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- An insured's inboard-powered motorboat injures a swimmer while the insured is at the helm. Section II of the homeowners policy:
- A resident son injures his sister at home and the parents present her $5,000 of bills to their own liability coverage. Section II:
- A homeowner is sued for slander after posting untrue remarks about a neighbor. On an unendorsed policy the claim is:
- An insured runs a small piano teaching studio in a spare room and wants liability cover for pupils who visit. The right step is:
- After a covered fire, the duties the insured owes under Section I include:
- An insured schedules a $12,000 ring on a scheduled personal property endorsement. If the ring is stolen, the policy pays:
Last reviewed: · editorial process