Jose Rodriguez, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Jose was at fault in an accident that caused $2,100 damage to the other auto and $800 damage to his own. Also, the courts awarded $14,000 and $9,000, respectively, to the two passengers in the other car for personal injuries.
Jose : $14,000
$10,000 covered by insurance
$4,000 covered by Jose
Jose :
$4,000 + $300 (deductable) = $4,300
Compulsory liability insurance:
Maximum per Person for bodily injury: $10,000
Maximum per total bodily injury per accident: $20,000
Maximum paid for property damage to others: $5,000
Jose Rodriguez, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision...
1. James is driving Hanna’s car with permission. He runs a stop sign, hits another car and injures the other driver. The court awards a liability judgment of $40,000 against James. James and Hanna both have a personal automobile insurance policy with liability coverage limits as follows: $25,000/$50,000 BI (bodily injury) and $15,000 PD (property damage). How will the liability coverage between these two policies most likely be coordinated? Select one: a. James’s policy pays $40,000 b. Hanna’s policy pays...