Which of the Following Statements About the Payment of Defense

question 43

Multiple Choice

Which of the following statements about the payment of defense costs by the PAP is (are) true?
I.They are paid in addition to the policy limits.
II.They are payable even after the limit of liability is exhausted.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Identical Boxes

Boxes that are exactly the same in size, shape, and appearance, typically used for uniform packaging or storage.

Divisible

Capable of being divided or separated into smaller parts without leaving a remainder.

Conditional Probability

The chance of a specific event happening when it is known that another event has occurred.

Multiplication Law

A principle used in probability that determines the likelihood of two independent events occurring together.