Question
Frank has a personal auto policy with the following limits: Coverage A: $50,000/$100,000/$50,000; Coverage B: $10,000; Coverage C: $50,000/$100,000; Coverage D: $50 deductible for other
Frank has a personal auto policy with the following limits: Coverage A: $50,000/$100,000/$50,000; Coverage B: $10,000; Coverage C: $50,000/$100,000; Coverage D: $50 deductible for other than collision, $500 deductible for collision.With respect to the following situation, indicate whether or not the losses are covered, and if possible, the dollar amounts that would be paid by the insurance company. Clearly identify what section of the policy is controlling and why the event is either covered or not covered.
Frank has a 17 year old daughter and a 12 year old son living at home. The daughter has a driver's license, but doesn't own a car. Frank has a 1968 Chevy Camaro in his garage that he is restoring. Frank carries no insurance on the Camaro. Frank's 12 year old son takes the Camaro for a joy ride. Frank's daughter is driving her boyfriend's car when she loses control and hits the Camaro being driven by Frank's son. The boyfriend's car will cost $5,000 to repair and the boyfriend has no coverage D for his vehicle. The Camaro will cost $8,000 to repair. The boyfriend was in the car at the time of the accident and suffered minor injuries, resulting in medical bills of $1,800.
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