West Virginia Property and Casualty Licensing Practice Exam

Under personal auto coverage, what limit applies for coverages as supplementary payments?

1. Automatic limit of $500

2. Limit varies by policy level

3. Standard limit of $250

4. No limit applies

The correct answer is: Standard limit of $250

In personal auto coverage, supplementary payments typically have a standard limit of $250. This amount applies to various supplementary payments that the insurer provides in addition to the policy's liability limits. The supplementary payments can include expenses such as bail bonds, premium costs for appeal bonds, and other legal costs incurred in the defense of a claim. This standard limit is designed to ensure that insured individuals have access to necessary financial support while dealing with claims without having to exhaust their liability coverage. It is important for policyholders to be aware of these additional benefits, as they can help mitigate immediate out-of-pocket expenses in certain situations. Other mentioned limits or conditions, such as an automatic limit of $500, a limit that varies by policy level, or the absence of any limits, do not align with the traditional structure of personal auto policies regarding supplementary payments.