In the example of ABC Masonry's liability policy, how will the claim for $150,000 in damage be settled?

The claim for $150,000 in damage will be settled based on the specifics of the liability policy, including coverage limits and deductibles. In this scenario, if the insurer pays $100,000, indicating that there is a coverage limit or some form of deductible at play, ABC Masonry would then be responsible for covering the remaining $50,000. This situation typically occurs in liability insurance scenarios where the insured's policy does not cover the full amount of the claim due to limitations established in the policy terms.

The other options do not align with common terms found in liability policies. If the insurer were to pay the full $150,000, it would indicate that there were no limitations on the coverage for this loss, which contradicts option B. Option C suggests an exaggerated payout that exceeds the damage amount, which is not standard practice in insurance claims. Lastly, if ABC Masonry were required to pay the entire amount without any coverage from the insurer, it would defeat the purpose of having liability insurance to mitigate such financial risks. Therefore, the correct answer reflects a clear understanding of coverage limits and the responsibilities of both the insurer and the insured in this situation.