John, a resident, purchased an unendorsed personal auto Policy. His part A liabi
ID: 2535742 • Letter: J
Question
John, a resident, purchased an unendorsed personal auto Policy. His part A liability limits are 50/100/25.
a. John was negligent while operating the vehicle and caused an accident. The other driver was injured, and John was ordered to pay $75,000 for bodily injury. The other driver's vehicle, a relatively new SUV, was a total loss. The SUV was valued at $35,000. How much would the insurer pay under John 's PAP liability coverage?
b. Betty, John's friend, also has a PAP. Her liability limits are 100/300/50. Betty borrowed John's car. While operating her car. he negligently hit a motorcycle. Injuries to the motorcycle rider were $140,000. How will this claim be settled between John and Betty's liability coverage? Clearly indicate how much is payable each person's policy, if anything.
Explanation / Answer
Part a
Bodily Injury = $75,000
SUV damage restricted to $25,000
Total $100,000, the insurer would pay under John's PAP liability coverage
Part b
Betty's policy will pay $100,000 and balance $40,000 will be paid by John's policy
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