An insured with a $100,000 Coverage E limit is held liable for $100,000 of damages, and the insurer spends $30,000 defending the suit. The insurer's total outlay is:

解析

Coverage E pays damages the insured is legally liable for up to the limit, and defense is provided at the insurer's expense in addition to that limit, so $100,000 of damages plus $30,000 of defense costs comes to $130,000. The $100,000 answer treats defense as if it eroded the limit, which is how a defense-inside-the-limits policy works, not a homeowners form.