Personal Auto PolicyCâu 374 / 474
The duty to defend under Part A of the personal auto policy means the insurer:
a.Must defend the insured against any suit, covered by the policy or not
b.Defends only when the claimant demands more than the policy limit
c.Must defend a suit seeking damages the policy covers, and may settle
d.Reimburses defense costs only after a judgment has been entered
Giải thích
The insurer has both the right and the duty to defend any suit asking for damages that Part A would pay, and it may investigate and settle any claim as it thinks appropriate. The duty is tied to the allegations, so it does not extend to a suit seeking damages the policy does not cover. It ends once the limit of liability has been exhausted by payment of judgments or settlements.
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Câu hỏi liên quan cùng chủ đề
- The insured's only listed car is in the shop for transmission repairs, so the insured borrows a neighbor's sedan for the week. Under the policy that sedan is:
- A friend borrows the insured's covered auto with permission and negligently causes $60,000 of bodily injury. Under Part A, the friend is:
- A resident son borrows a classmate's car with permission and injures a cyclist. Under his parent's personal auto policy, Part A liability coverage:
- An insured with a $100,000 per-person bodily injury limit is sued, a $100,000 judgment is entered, and the insurer spent $30,000 defending the case. In total the insurer pays:
- A driver with 100/300/50 limits is at fault. One person's injuries are valued at $150,000, a second person's at $80,000, and a car is damaged to the extent of $12,000. Part A pays:
- With 100/300/50 limits, an at-fault insured injures four people whose claims are valued at $90,000, $120,000, $150,000 and $60,000. Part A bodily injury pays:
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