Which of the following statements regarding the Coverage E limit in the homeowners policy is true?
A)It is an aggregate limit,and once the amount paid for one or more claims reaches the limit,no additional coverage is provided.
B)The limit applies only if a court orders the insured to pay-there is no coverage for settlements reached out-of-court.
C)Any legal defense costs incurred by the insurer are counted against the limit of liability.
D)The limit applies on a per-occurrence basis to bodily injury and property damage liability.

Question

Quizplus · Accepted Answer

The Coverage E limit in the homeowners policy applies on a per-occurrence basis to bodily injury and property damage liability. The limit is not an aggregate limit, meaning each occurrence is covered up to the limit. Legal defense costs incurred by the insurer are typically in addition to the limit of liability. Settlements reached out-of-court may also be covered, subject to the limit.

Which of the Following Statements Regarding the Coverage E Limit