a) Auto Insurance: Assume you have an auto insurance policy with 20/80/50 terms. You are involved in an accident in which you are found to be at fault. Two people were hurt in the other car and their bodily injury claims are $15,000 for one and $25,000 for the other. Damage to the other car amounted to $10,000 and a store front damage is worth $45,000. How much will your policy pay and how much will you pay out of pocket to settle these claims?

b) Health Insurance: An athlete is injured and his total medical expenses amount to $10,000. His insurance policy stipulates that he has 20% copay after $100 deductible. His annual out of pocket maximum is $1,500. Assuming this is his first medical expense of the year, how much will his insurance cover and how much will he pay out of pocket?

c) Life Insurance: Assume a couple has $200,000 mortgage, $50,000 auto loan and $10,000 other personal debt. They dont have any child. Using DINK method, how much life insurance is adequate for each assuming funeral expenses of $10,000?