Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car had damage of $9,800, and the car she struck had damage of $8,100. After a lengthy court suit, the couple struck were awarded personal injury judgments of $15,700 and $6,700, respectively.
a. What will the insurance company pay for this accident? Amount paid $
b. What is Marika’s responsibility? Amount paid $
Ans:
a. What will the insurance company pay for this accident :
| Amount paid | $21,700 |
Explanation:
Bodily injury to others: 10/20. This means that the insurance company will pay damages to people injured or killed by your auto up to $10,000 for injury to one person per accident or a total of $20,000 for injuries to two or more people per accident.
Property damage to someone else's property: 5. The insurance company will pay up to $5,000 for damages that you have caused to the property of others.
| Insurance company pays | $ |
| Bodily ( $10,000 + $6,700) | 16,700 |
| Property | 5,000 |
| Total | 21,700 |
Ans:
b. What is Marika's responsibility :
| Amount paid | $18,600 |
Explanations:
| Marika pays | $ |
| Bodily ( $15,700 - $10,000) | 5,700 |
| Property | 9,800 no collision |
| Property damage not covered by compulsory ($8,100 - $5,000) | 3,100 |
| Total | 18,600 |
Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car ha...
Marika Katz bought a new Blazer and has insurance coverage of 25/50/25 with $200 deductible for collision. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car had damage of $8,800, and the car she struck had damage of $5,500. After a lengthy court suit, the couple struck were awarded personal injury judgments of $20,000 and $10,000, respectively. a. What will the insurance company pay for this accident? Amount paid...