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jchen
12-14-2011, 01:54 PM
An unendorsed Personal Auto Policy (PAP) coverages and limits:
Liability $100,000/$300,000/$50,000
Ernest lost control of the vehicle and struck a parked car. The damages and costs from the accident are as follows:
• Damages to the parked car $8,500
• Defense cost $7,500
How much, if any, will PAP insurer pay under Part A—Liability Coverage?

Answer in the quiz is $16,000 (parked car $8,500 and Defense cost $7,500).
Shouldn’t defense cost in DCCC instead of in coverage A? and answer should be $8,500

Prince
12-14-2011, 05:01 PM
In this example, Defense cost is a payment to a third party and therefore within Part A. 16000 is the right answer.