Question

All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT:

1) They pay defense cost even after the aggregate limit has been reached
2) They pay all expenses incurred by the insurer
3) They pay pre-judgment and post-judgment interest
4) They pay all reasonable costs incurred by the insured in helping to investigate or defend a claim

Answer 1

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:

1. 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.
2. 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.
3. They pay pre-judgment and post-judgment interest: This is a true statement. Supplementary payments cover pre-judgment and post-judgment interest.
4. 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.