Question

In a personal auto policy, supplemental payments should include?

1) cost of defense in excess of liability coverage
2) up to $250 for the cost of bail bonds
3) costs incurred because of attendance at hearings or trials at the company's request
4) all of the above

Answer 1

Supplemental payments in a personal auto policy include cost of defense in excess of liability coverage, up to $250 for bail bonds, and costs incurred from attending hearings or trials at the insurance company's request.

Step-by-step explanation:

In a personal auto policy, supplemental payments typically cover various additional expenses that are beyond the liability coverage. These can include the following:

The cost of defense which is the amount spent on legal defense, in excess of the policy's liability coverage limits.Up to $250 for the cost of bail bonds required because of a traffic incident.Expenses for attendance at hearings or trials at the insurance company's request. This may include lost wages and other costs.

Therefore, the correct answer to the student's question is "4) all of the above." This indicates that supplemental payments in a personal auto policy can include the cost of defense in excess of liability coverage, up to $250 for bail bonds, and the costs incurred due to attendance at hearings or trials when requested by the insurance company.