Actuarial Notes

Exam DISC-IA Practice Question 232

Study guide: Exam DISC-IA

In a tort suit in a pure comparative negligence state, the jury assesses the plaintiff's special damages at $80,000 and general damages at $120,000, finds the plaintiff 25% at fault, and also awards $100,000 of punitive damages against the defendant. The state prohibits insuring punitive damages. The defendant's liability insurer covers the compensatory award, with ample limits. How much does the insurer pay?

  • A) $150,000
  • B) $200,000
  • C) $225,000
  • D) $250,000

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