Question

Part 1 -

Becky Fenton has 45/90/50 automobile insurance coverage. If two other people are awarded $85,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

Part 2 -

Kurt Simmons has 65/120/20 auto insurance coverage. One evening, he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $7,100, and damage to the store was $19,820.

a. What amount will the insurance company pay for the damages?

b. What amount will Kurt have to pay?

Answer 1

PART 1: 45/90/50 Insurance means that $45000 per person is covered for bodily injury, $90000 total bodily injury, $50,000 for property damages

The total amount that insurance Cowill pay for bodily injury = $90,000

PART 2: 65/120/20 Insurance means that $65000 per person is covered for bodily injury, $120000 total bodily injury, $20,000 for property damages

a: Insurance Co will pay $20000

b: Kurt will pay the balance = 7100+19820-20000 = $6920