An insured must post a $500 bail bond after a covered accident and loses three days of work attending the trial at the insurer's request. Under the standard general liability supplementary payments, the insurer pays:
Explanation
Supplementary payments on a standard general liability policy include the cost of bail bonds up to $250 and reasonable loss of earnings up to $250 a day for time the insured spends helping at the insurer's request. The bond contribution is therefore capped at $250 even though $500 was posted, and three days at $250 a day comes to $750. Paying the whole $500 bond ignores that stated cap, and refusing the earnings ignores the attendance provision.
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
- A manufacturer's general aggregate is fully exhausted in July by premises claims. In September a customer is injured by a defective product the manufacturer sold. The policy:
- A tenant business rents a storefront, negligently starts a fire, and causes $250,000 of damage to the leased building. Its liability policy shows a $300,000 damage to premises rented to you limit. The insurer:
- A liability insurer settles a suit for the full $1,000,000 each-occurrence limit and has already spent $180,000 defending it. On a standard general liability policy the insurer's total outlay is:
- A firm carried an occurrence-form liability policy one year and switched to a claims-made form the next. A suit filed this year alleges injury that took place in the earlier year. Which policy responds?
- A claims-made policy in force now shows a retroactive date of three years ago. A claim made today alleges an error committed five years ago. The policy:
- When a claims-made liability policy is cancelled, the supplemental extended reporting period differs from the basic one in that the supplemental period:
Last reviewed: · editorial process