The insured is sued for an event that is covered under his Homeowners policy. The insured...
The insured is sued for an event that is covered under his
Homeowners policy. The insured has a $100,000 limit under Section
II. The insured didn’t think that he was at fault and the case went
to trial. The court awarded $250,000 in damages to the plaintiff
and it cost $500,000 to defend the case ($475,000 attorneys fees
and $25,000 for other litigation costs). The insurer will pay a
total of which one of the following amounts under the insured’s
Homeowners policy?
Select one:
a. $100,000
b. $750,000
c. $600,000
d. Nothing
Homework Answers
- C -100000 +500000 = 600000, These costs are to be paid by the insurer in addition to the limits of liability in the policy. 100000 is the basic limit of the policy
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