Responsabilidad y CasualidadPregunta 439 de 531
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.$1,000,000 plus half the defence costs
b.$820,000, the limit less defence costs
c.$1,180,000, the limit plus defence costs
d.$1,000,000, as defence erodes the limit
Explicación
Defence costs on a standard general liability policy are a supplementary payment made in addition to the limit of insurance, so the insurer pays the $1,000,000 settlement and the $180,000 of defence expense, a total of $1,180,000. The answers that subtract defence from the limit describe a defence-within-limits or eroding-limits form, common on professional liability but not here. The duty to defend ends once the limit has been exhausted by a judgment or settlement.
Practica las 531 preguntas gratis — sin registro.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Preguntas relacionadas de este tema
- A general liability policy carries a $1,000,000 each-occurrence limit and a $2,000,000 general aggregate. The insurer pays $600,000, $500,000 and $400,000 on three separate premises claims in one policy year. How much general aggregate is left?
- 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:
- 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:
- 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:
Última revisión: · proceso editorial
Equipo de PrepPass · Verificado con California Property & Casualty Insurance License Exam · Cómo revisamos