Final answer:
Supplementary payments of a commercial general liability policy cover defense costs, pre-judgment and post-judgment interest, and reasonable costs incurred by the insured in helping to investigate or defend a claim. However, they do not pay all expenses incurred by the insurer.
Step-by-step explanation:
The statement that is NOT true regarding the supplementary payments of a commercial general liability policy is:
- They pay all expenses incurred by the insurer: This statement is not true. Supplementary payments of a commercial general liability policy may cover defense costs, pre-judgment and post-judgment interest, and reasonable costs incurred by the insured in helping to investigate or defend a claim. However, they do not pay all expenses incurred by the insurer.
- They pay defense cost even after the aggregate limit has been reached: This is a true statement. Supplementary payments cover defense costs even after the aggregate limit has been reached.
- They pay pre-judgment and post-judgment interest: This is a true statement. Supplementary payments cover pre-judgment and post-judgment interest.
- They pay all reasonable costs incurred by the insured in helping to investigate or defend a claim: This is a true statement. Supplementary payments cover all reasonable costs incurred by the insured in helping to investigate or defend a claim.