Bailey Is Sued for Causing an Accident and Is Found

question 51

Multiple Choice

Bailey is sued for causing an accident and is found to be liable for $50,000 in compensatory damages,$50,000 in court costs and $250,000 in punitive damages.His policy limits are $300,000 and the most common rules apply regarding an insurer's obligations to pay damages incurred by the insured.How much does the insurer have to pay?

• A)$50,000.00
• B)$100,000.00
• C)$300,000.00
• D)$350,000.00