Question

Mrs. Cook carries limits of liability of $100,00/$300,000/$50,000 on her personal automobile policy. After an accident, Mrs. Cook's insurer paid $80,000 in bodily injury damages and her defense costs were $40,000. What amount did the insurer pay as a result of this accident?

Answer 1

Answer: $120,000

Explanation:

Based on the information given, the amount that the insurer will pay as a result of this accident will be gotten by adding the amount of bodily injury damages and the defense costs. This will be:

= $80000 + $40000

= $120,000

Therefore, the insurer will pay $120,000.