Charles has a PAP with the following coverages: Liability coverages: $100,000/$200,000/$50,000 Medical payments coverage; $7,000 per person
Question:
Charles has a PAP with the following coverages:
Liability coverages: $100,000/$200,000/$50,000
Medical payments coverage; $7,000 per person
Uninsured motorists coverage: $15,000 per person
Collision Loss: $1,500 deductible
Other-than-collision loss:$150 deductible
Assume each event is an INDEPENDENT event. There may be multiple damages. In each event show how much Charles would receive from his insurer? What coverages would be in effect? SHOW YOUR WORK
- Charles’s wife accidently drives into a neighbor’s house during a snowstorm. The property damage to the house is $60,000. The damage to the family car is $15,000 and his wife has medical expenses of $17,000.
2. Charles’s daughter has a boyfriend. She allows the boyfriend to drive Charles’s car home from the movie theater. The boyfriend hits a car that was stopped at a stop light. There were four people in the car. Each person in the car had damages of $60,000. The boyfriend did not have insurance and neither did the driver of the car that was hit. Charles’s car was miraculously undamaged except that it needs to have its windshield replaced for a cost of $200.
explain clearly how much Charles would receive from his insurer? What coverages would be in effect?
Personal Financial Planning
ISBN: 978-1111971632
13th edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley