Joe was driving a neighbor's pickup truck to get a load of firewood. A child darted out between two parked cars and ran into the street in front of the truck. In an unsuccessful attempt to avoid hitting the child, Joe lost control of the vehicle and hit a telephone pole. The child was critically injured, the pickup truck was badly damaged, and the telephone pole collapsed. Joe has liability coverage and collision coverage under his PAP. The neighbor also has a PAP with liability coverage and collision coverage on the pickup.
a. Joe is found guilty of negligence. Which insurer will pay first for the bodily injuries to the child and the property damage to the telephone pole? Explain.
b. Which insurer will pay for the physical damage to the neighbor's pickup? Explain.