what type of insurance policy would pay benefits if someone with $300,000 of auto liability coverage…
what type of insurance policy would pay benefits if someone with $300,000 of auto liability coverage received a court judgement to pay $680,000 for injuries to others and damage to property?\na. disability liability\nb. property damage liability\nc. umbrella liability\nd. bodily injury liability
Answer
Brief Explanations:
Umbrella liability insurance provides additional coverage beyond the limits of primary liability policies. In this case, the auto - liability coverage of $300,000 is insufficient to pay the $680,000 court judgment, and umbrella liability insurance would kick in to cover the excess. Disability liability insurance is for disability - related claims, property damage liability is for damage to property but may not cover amounts beyond the primary policy limit in this context, and bodily injury liability is part of the primary auto - liability coverage which has already been exhausted.
Answer:
C. Umbrella liability