Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insur
ID: 2466753 • Letter: R
Question
Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Rusty was at fault in an accident that caused $5,300 damage to the other auto and $2,600 damage to his own. Also, the courts awarded $13,300 and $8,700, respectively, to the two passengers in the other car for personal injuries.
a.How much will the insurance company pay for Bodily injury? What is Rusty’s share of the responsibility for bodily injury?
b.How much will the insurance company pay for property damage? What is Rusty’s share of the responsibility for property damage?
Explanation / Answer
10/20/5 compulsory liability insurance = 10,000/20,000/5,000
Maximum coverage for Bodily Injury Liability per person = 10,000/Maximum coverage for Bodily Injury Liability per accident = 20,000/Maximum coverage for Property Damage Liability per accident = 5000
Total Damage = $5300 (auto) + $2600(own) + $13,300 Bodily damage one person +$8,700 Bodily Damage 2nd person.
a.How much will the insurance company pay for Bodily injury? What is Rusty’s share of the responsibility for bodily injury?
One person damage = $13,300
He is responsible for bodily amount over $10,000 for first person = ($10,000)
Rusty’s share of the responsibility for bodily injury = $3,300
Insurance company pay for Bodily injury = $10,000 + $8,700 = $18,700
b.How much will the insurance company pay for property damage? What is Rusty’s share of the responsibility for property damage?
Rusty’s share of the responsibility for property damage = $300 deductible
Insurance company pay for property damage = $2600 - $300 = $2300
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