North Carolina Adjuster Practice Exam

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What does Supplementary Payments coverage in a North Carolina motor vehicle liability policy provide?

Coverage for legal fees
Up to $250 for bail bonds
Medical expenses for the insured
Reimbursement for lost wages

The correct answer is: Up to $250 for bail bonds

Supplementary Payments coverage in a North Carolina motor vehicle liability policy is designed to provide additional benefits beyond the standard liability coverage. One of the key features of this coverage is that it includes up to $250 for bail bonds. This is particularly important in situations where an insured is involved in an accident that results in bodily injury or property damage and faces legal action as a result. The bail bond coverage helps ensure that the insured can secure their release from custody while awaiting trial, thereby providing peace of mind during a potentially stressful time. The focus of Supplementary Payments is on supporting the insured with necessary legal and procedural expenses that arise due to an incident covered under the policy, and the bail bond is a specific aspect of this support. This highlights the policy's intention to assist insured individuals beyond just covering damages to third parties, encompassing their immediate legal needs as well.