Exam DISC-IA Practice Question 211
Study guide: Exam DISC-IA
An engineering firm's professional liability policy has a $1,000,000 limit with defense costs inside the limit and a soft hammer clause under which the insurer pays 50% of loss and defense incurred after a refused settlement. After $100,000 of defense, the insurer recommends settling for $250,000, and the firm refuses. The case goes to trial, with $200,000 more of defense costs, and ends in a $600,000 judgment. How much does the insurer pay?
- A) $350,000
- B) $450,000
- C) $625,000
- D) $900,000
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