Which of the following is excluded from Supplementary Payments?

Prepare for the Manitoba IBAM Fundamentals of Insurance Exam. Use our quiz with multiple-choice questions, each offering hints and explanations. Get set to ace your exam!

Supplementary Payments in insurance policies typically cover additional costs incurred during the defense of a claim, such as costs of defense, court costs, and interest from the date of judgment. These payments are designed to assist the insured beyond the basic limits of liability coverage.

The amount of the settlement, however, is not included in Supplementary Payments. This is because settlements are part of the policy's liability limits rather than an additional coverage. The insurer pays settlements up to the policy limit but does not provide these amounts as supplementary payments. Therefore, the focus of Supplementary Payments is on the additional expenses that arise from handling claims, not the damages awarded or settled amounts, which fall under the primary coverage.

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