Question

Kim, age 20, is a college student who recently purchased her first car from a friend who had financial problems. The vehicle is a high mileage, 2001 Toyota Corolla with a current market value of $2000. Assume you are a financial planner and Kim asks your advice concerning the various coverages in the PAP.
a. Briefly describe the major coverages that are available in the PAP.
b. Which of the available coverages in (a) should Kim purchase? Justify your answer.
c. Which of the available coverages in (a) should Kim not purchase? Justify your answer.
d. Assume that Kim purchases the PAP coverages that you have recommended. To what extent, if any, would Kim's insurance cover the following situations?
1. Danielle, Kim's roommate, borrows Kim's car with her permission and injures another motorist. Danielle is at fault.
2. Kim is driving under the influence of alcohol and is involved in an accident where another motorist is seriously injured.
3. During the football season, Kim charges a fee to transport fans from a local bar to the football stadium. Several passengers are injured when Kim suddenly changes lanes without signaling and hits another car.
4. Kim drives her boyfriend's car on a regular basis. While driving the boyfriend's car, she is involved in an accident in which another motorist is injured. Kim is at fault.
5. Kim rents a car in England where she is participating in a summer study program. The car is stolen from a dormitory parking lot.
e. Kim also owns a motorcycle. To what extent, if any, does Kim's PAP cover the motorcycle?



$1.99
Sales16
Views359
Comments0
  • CreatedJanuary 30, 2015
  • Files Included
Post your question
5000