Rhode Island Insurance Adjuster Exam

What do supplementary payments in an insurance policy typically cover?

1. Property damage only

2. Investigation and resolution of claims

3. Medical expenses only

4. Only legal fees

The correct answer is: Investigation and resolution of claims

Supplementary payments in an insurance policy are designed to cover various expenses that can arise during the investigation and resolution of claims. This includes not only the direct costs of legal defense but also other related expenses such as court costs, investigation fees, and even lost wages for the insured when they are required to attend court as a witness. These payments enhance the policyholder's coverage by addressing significant expenditures that may not be included in the standard coverage limits. By covering the costs associated with the claims process, supplementary payments provide added financial support and protection for the insured, ensuring that they are not burdened with unexpected expenses while navigating claims.