What Personal Auto coverage would pay for the insured's travel expenses and loss of earning while the insured is involved in the settlement process of a covered loss?

• A. Part A liability
• B. Part B Medical Payments
• C. Part C Uninsured Motorist
• D. Part D Physical Damage

Answer: (A)

The idea being tested is that liability coverage includes extra payments called supplementary payments. These are paid in addition to the policy limits and cover certain claim-handling costs the insured incurs because of a covered loss—specifically, the insured’s travel expenses and loss of earnings when they are required to attend settlement proceedings or hearings at the insurer’s request. This is a feature of Part A liability, not of the medical payments (Part B), uninsured motorist (Part C), or physical damage (Part D) coverages. Medical payments would only cover medical expenses; uninsured motorist covers injuries from another driver without insurance; and physical damage covers damage to the insured’s own vehicle. So the travel and lost earnings related to settlement proceedings are paid under Part A’s supplementary payments.