Mollie has 100/300/50 liability insurance and $50,000 PIP insurance. She drives through a stop sign and hits a telephone pole and bounces into a minivan with 8 people inside. Some are seriously hurt and sue her. Others have minor injuries. Three passengers in Mollie's car are also hurt.
a. The pole will cost $7,000 to replace. Mollie also did $6,700 worth of damage to the minivan. What insurance will cover this, and how much will the company pay?
b. The minivan's driver was a concert violinist. The injury to his hand means he can never work again. He sues for $4,000,000 and is awarded that money in court. What type of insurance covers this, and how much will the insurance company pay?
c. The minivan's driver (from part b) had medical bills totaling $60,000 from his hospital trip and physical therapy after the accident. What type of insurance covers this, and how much will the insurance company pay?
d. The three passengers in Mollie's car are hurt and each requires $12,000 worth of medical attention. What insurance covers this, and how much will the company pay?