The Supplemental Payments under Part A - Liability Coverage of the Personal Auto Policy provides what amount for loss of earnings?

Prepare for the Iowa Property and Casualty Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct amount provided for loss of earnings under the Supplemental Payments in Part A - Liability Coverage of the Personal Auto Policy is $200 per day. This feature is designed to cover the insured's income loss due to time taken off work to attend legal proceedings as a result of a covered accident, such as a lawsuit or other related matters stemming from the liability coverage.

In this context, it’s important to understand that Supplemental Payments are additional benefits provided on top of the liability coverage limits. They enhance the policy's protection by offering specified amounts for various expenses, including loss of earnings up to that daily limit. This financial support is crucial for policyholders who may need to be involved in court proceedings, ensuring that they do not experience undue financial hardship due to their legal obligations after an incident.

The amounts provided by the other options exceed the limits set by the policy, making them incorrect for this context.

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