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Automobile Insurance Application Question #1 Fred hasa PAP with the following coverages: Liability coverages: $100,000/$300,000/$50,000 Medical payments coverage: $5,000 per person Uninsured motorists coverage: $25,000 each person Collision loss: $250 deductible; Other-than-collision loss: $100 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. Letter Loss Covered? Yes or No Yes Insured's Deductible Amount $250 Amount Payable by Insurer After Deductible $9,750 What Policy section? Collision Example: Fred hits a parked car, damage = $10,00 I: Fred's wife goes shopping at a supermarket. When she returns, the left rear fender has been damaged by another driver who did not leave a name. The cost of repairing the car is $2,000. J: Fred works for a construction company&is driving a cement truck. He negligently injures another motorist who sues Fred for $25,000. K: Fred's son drives a family car on a date. He gets drunk, so his girlfriend drives him home. She negligently injures another motorist who has | bodily injuries in the amount of $200,000. L: Compact discs (CDs)valued at $500 are stolen from Fred's car. The car was locked when the theft occurred. M: While driving a rented golf cart, Fred accidentally injures another golfer with the cartStep by Step Solution
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