Patrick has a PAP with liability limits of $50,000/$100,000/$25,000. Patrick failed to stop at a red light

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Patrick has a PAP with liability limits of $50,000/$100,000/$25,000. Patrick failed to stop at a red light and hit a van. The van sustained damages of $15,000. Three passengers in the van were injured and incurred the following bodily injuries:

Passenger A ....... $15,000

Passenger B ....... $60,000

Passenger C ....... $10,000

Patrick was also injured and incurred medical bills of $10,000. His car sustained damages of $10,000. Because of his injury, Patrick was unable to work and lost $5000 in wages. How much will Patrick's insurer pay under the liability coverage (Part A) section of his PAP? Explain your answer.


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Principles of Risk Management and Insurance

ISBN: 978-0132992916

12th edition

Authors: George E. Rejda, Michael McNamara

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