Automobile Case

Jim Driver insures his vehicles with A1 Auto insurance company.

Jim is the named insured on the policy.

Vehicles: 2016 Miata and 2016 Ford Taurus

Policy coverage on each vehicle:

Coverage A Liability $300,000 each Occurrence

Coverage B Medical Payments $3,000 per person

Coverage C Uninsured Motorist $100,000 each Occurrence

Coverage D Collision - Actual Cash Value less $500 deductible

Other than Collision - Actual Cash Value less $100 deductible

Jim is married with a wife, Mary and a 16 year old son, Joe.

Jim and his neighbor Ed were using the Ford Taurus to take Jims unneeded furniture to the local Goodwill. Jim took a corner too sharp and the furniture violently shifted causing the car to cross into the oncoming lane and eventually overturn.

Ed was hurt as he was thrown into the door. Neither of them had a seatbelt on. Ed went to the doctor for x-rays and treatment.

When Jim was in the other lane, he side swiped a Ram pick-up truck. The driver in the other vehicle was injured along with the three other people in the truck. The group was on the way to Iowa for a 10 day pheasant hunt. Four dogs, in kennels, in the back of the truck were killed when the kennels crashed into one another. Hunting gear was also damaged and they were unable to go on the trip.

When Jim was walking to the damaged truck a car of gawkers ran over his foot. He went to the doctor for treatment.

Furniture in Jims car was damaged beyond use.

The truck that Jim hit was pushed into a Starbucks store front destroying the window and all that was in the window display, including the tables and chairs and food that was for sale. The store closed for five days while the window was fixed. The following are damages incurred or submitted for the accident.

Jim $6,000 Medical Expense, $1,000 Lost Wages

Ed $5,000 Medical Expense, $5,000 Pain and Suffering

Taurus $15,000, $3,000 Furniture

Truck $34,000

Occupants of Truck

Driver - $200,000 Medical Expense, $30,000 Lost wages, $40,000 Pain and Suffering

Passenger 1 - $6,000 Medical Expense, lost wages $15,000

Passenger 2 - $10,000 Medical Expense, $12,000 disfigurement

Passenger 3 - $20,000 emotional distress of see his dog die in accident

Dogs $3,800

Hunting Gear $4,500

Hunters loss of down payment on lodge stay $1,700

Store - $2,000 glass damage, $1,000 inventory, $2,000 lost income by the store.

Based on Jims policy indicate for each item shown:

1. Use the policy coverage found on page one. Identify type of coverage that is involved (i.e. Liability, Medical Expense, Collision, Other than Collision).

2. Show potential amount of coverage under the policy, with deductible, if there is any.

3. Need to identify what happens if the total amount of potential loss is more than amount of coverage available under any of the coverages.

Coverage Deductible Amount

Jim ______________________________________________________

Ed ______________________________________________________

Taurus ______________________________________________________

Furniture ______________________________________________________

Truck _______________________________________________________

Occupants of Truck

Driver - _______________________________________________________

Passenger 1 - ______________________________________________________

____________________________________________________

____________________________________________________

Passenger 2 - _____________________________________________________

___________________________________________________

Passenger 3 - ____________________________________________________

___________________________________________________

Dogs _____________________________________________________

Hunting Equipment __________________________________________

Lodge Down Payment _________________________________________

Store ______________________________________________________