Question

Joe has a Business Auto Coverage Form with a $100,000 policy limit. In a claim that results in an $80,000 court award along with $50,000 for expenses due to defending the claim, what is the total amount that will be paid under Joe's Business Auto Coverage Form?

Answer 1

Answer:

The amount of $130,000 coverage will be paid under the business auto coverage form of Joe

Explanation:

The amount which will be paid under the business auto coverage form of Joe is computed as:

Amount = Claim amount which court awarded + Expenses incurred while defending

where

Claim amount which court awarded amounts to $80,000

Expenses incurred while defending amounts to $50,000

Putting the values above:

Amount = $80,000 + $50,000

Amount = $130,000

The policy limit of Joe is $100,000, but in the claim the actual incurred amount is $130,000. Therefore, the coverage amount would be $130,000.