Examinator
05-05-2005, 10:26 AM
The CAS said that both A and C were accepted as correct to this question, which was "which of the following are true regarding the ISO PAP?" The acceptance of A and C led to the acceptance or rejection of the following statement.
The insurer will pay any interest accruing after a judgment is entered in any suit the insurer defends, even if the judgment exceeds the policy's coverage limit.
I know that post-judgment interest is covered, and is not subject to the policy limit. But the question is, which presumably is what caused the confusion, on what amount is that interested covered? Say the policy limit is $100,000. Post-judgment interest is 10%. Damages are $150,000 (assume no other damages or supplemental payments). $100,000 in damages is covered by the policy. Is the covered post-judgment interest $15,000 or $10,000?
The insurer will pay any interest accruing after a judgment is entered in any suit the insurer defends, even if the judgment exceeds the policy's coverage limit.
I know that post-judgment interest is covered, and is not subject to the policy limit. But the question is, which presumably is what caused the confusion, on what amount is that interested covered? Say the policy limit is $100,000. Post-judgment interest is 10%. Damages are $150,000 (assume no other damages or supplemental payments). $100,000 in damages is covered by the policy. Is the covered post-judgment interest $15,000 or $10,000?