1. Louise is the named insured on a PAP with the following coverage: Liability $500,000. Combined, single limit Medical Payments $2,000. per person Uninsured and Underinsured Motorists Coverages $100,000. Single limits For each of the situations described below, indicate the amount, if any, that Louise's PAP would pay for the loss. Assume that she lives in a state that does not have no. fault insurance. Consider each situation separately. Explain your answers: a Louise's cousin, Larry, borrows her car. He gets drunk, drives off the road, strikes and kills a farmer's cow. The cow was valued at $1,500.00 C. Louise was involved in an accident with another motorist, who claims Louise did not have the right of way. The injured driver was awarded damages of $300,000. Legal defense costs incurred by Mary's insurance company were $50,000. Describe what is paid under various parts of the PAP. d. An uninsured driver hits Louise's 4 year-old son when he is attempting to cross the street. The son was in a cross-walk. Medical bills are over $45.000. If there is coverage, take a reasonable guess at the amount paid and the coverage involved. e. Louise rents a car while on vacation in Italy. She causes an accident. The other driver has medical bills of $10,000.00 and will not be able to work for a month, losing $2,000 in wages. 1. Louise is the named insured on a PAP with the following coverage: Liability $500,000. Combined, single limit Medical Payments $2,000. per person Uninsured and Underinsured Motorists Coverages $100,000. Single limits For each of the situations described below, indicate the amount, if any, that Louise's PAP would pay for the loss. Assume that she lives in a state that does not have no. fault insurance. Consider each situation separately. Explain your answers: a Louise's cousin, Larry, borrows her car. He gets drunk, drives off the road, strikes and kills a farmer's cow. The cow was valued at $1,500.00 C. Louise was involved in an accident with another motorist, who claims Louise did not have the right of way. The injured driver was awarded damages of $300,000. Legal defense costs incurred by Mary's insurance company were $50,000. Describe what is paid under various parts of the PAP. d. An uninsured driver hits Louise's 4 year-old son when he is attempting to cross the street. The son was in a cross-walk. Medical bills are over $45.000. If there is coverage, take a reasonable guess at the amount paid and the coverage involved. e. Louise rents a car while on vacation in Italy. She causes an accident. The other driver has medical bills of $10,000.00 and will not be able to work for a month, losing $2,000 in wages
