Background

Brooke owns a 2010 Honda Civic. She insures the car under a PAP with liability limits of $25/50/25, uninsured motorists coverage of $25,000, medical payments coverage of $5,000 per person, and collision coverage with a $250 deductible.

With respect to each of the following situations, indicate whether the loss is covered and the amount payable, if any under the policy. Assume that each situation is a separate event. Please show your calculations and explain the basis for the claim payment.

1.Brookes car was hit by a car that ran a stop sign. The driver of the other car fled the scene of the accident. Brookes car was not damaged. However, Brooke required extensive medical care as a result of the accident. Her medical expenses from the accident totaled $20,000. Because of her injury, Brooke was unable to work for a week and lost $4,000 in wages.

2.While driving the Civic, Brooke slide off an icy road. Her car was not damaged. Brooke suffers a broken leg, and the passenger riding with her sustained a broken arm and severe laceration on her forehead. Brooke has medical expenses of $3,000 and her passenger has medical expenses of $6,000.

How much will Brookes insurer pay? Please show your calculations and explain as appropriate. Please identify the coverage under which each claim would be paid.