Javier Perez is a 40-year-old loan officer at a large regional bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon Javier visits Unique Motors and buys a new car for $32,000. To obtain insurance on the car, Javier calls his agent, Avery Campbell, who represents Green’s Insurance Company, and explains his auto insurance needs. Avery says that she’ll investigate the various options for him. Three days later, Javier and Avery get together to review his coverage options. Avery offers several proposals, including various combinations of the following coverages: 

(a) Basic automobile liability insurance, 

(b) Uninsured motorist’s coverage, 

(c) Automobile medical payments insurance, 

(d) Automobile collision insurance, and 

(e) Comprehensive automobile insurance.

1. Describe the key features of these insurance coverages.

2. Are there any limitations on these coverages? Explain.

3. Indicate the persons who would be protected under each type of coverage.

4. What kind of insurance coverages would you recommend that Javier purchase? Explain your recommendation.