Multiple choice

Company's total liability to pay compensation, expenses and defence costs shall not exceed _______.

  1. operative limit

  2. indemnity limit

  3. cross liabilities

  4. 50% of company’s liabilities
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Company's total liability to pay compensation, claimant's costs, fees and expenses and defence costs shall not exceed the indemnity limit stated in the schedule. Indemnity limit applies to any one claim or series of claims arising from one originating cause. Indemnity limit shall represent the total amount of company's liability during policy period.

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