4. How Much of a Major Auto Accident Loss Will Be Covered? Ashley Diamond of Gri

Question

4. How Much of a Major Auto Accident Loss Will Be Covered? Ashley Diamond of Griffin, Georgia, drives an eight-year-old Toyota valued at $5600. She has a S75,000 personal automobile policy with $10,000 per-person medical payments coverage and both collision ($200 deductible) and comprehensive cov- erage. David Smith of Bristol Virginia, drives a four- year-old Chevrolet Malibu valued at $9500. He has a 25/50/15 family automobile policy with $20,000 in medical payments coverage and both collision ($100 Late one evening, while he was driving back from Rocky Mountain National Park, David's car crossed the centerline of the road, striking Ashley's car and forcing it into a ditch. David's car also left the road and did extensive damage to the front of a roadside store. The following table indicates the damages DO IT IN CLASS and their dollar amounts. at deductible) and comprehensive insurance PAGE 309 Item Bodily injuries suffered by Ashley Bodily injuries suffered by Fran, a Amount $ 6,800 28,634 passenger in Ashley's car Ashley's car Bodily injuries suffered by David Bodily injuries suffered by Cecilia, 9,600 2,700 12,845 a passenger in David's car David's car Damage to the roadside store 9,500 14,123

Explanation / Answer

A) $23623+$10000+$10000+$10000-$200=$53423

B) subrogation rights will definitely come because poilcy taken by him with his name for the car so he has right to claim the money for the loss. According to the insurance policy subrogration it is a duty of the insurer to make the loss good when insured suffered from any loss.

C) David will get $20000 for his injury and $20000 for the bodily injury of his passenger.

D) A insurance is taken by the David so claim is either given to him or handover to his nominee .

Pay which is given by insurance Co. Is $39900+$9500=$49400

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