Fred has a PAP with the following coverages: Liability coverages: 100/300/50 Medical payments coverage: $5,000 each 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, a) indicate whether the loss is covered; b) if covered, how much is paid by insurance policy. Assume that each situation is a separate event. Fred's son, age 16, is driving a family car and kills a pedestrian. The family of the deceased pedestrian sues for $500,000. Fred borrows a friend's car to go to the supermarket. He fails to stop at a red light and negligently smashes into another motorist. His friend only has liability insurance with a single limit of $9,000. The other driver's car, valued at $10,000, it totally destroyed. In addition, damages to the friend's car are $3,000. Fred's daughter, Meira, attends college in another state and drives a family car. Fred tells her that no other person is to drive the family car. Meira lets her boyfriend drive the car, and he negligently injures another motorist. The boyfriend is sued for $50,000. Fred's wife is driving a family car in a snowstorm. She loses control of the car on an icy street and smashes into the foundation of a house. The property damage to the house is $20,000. The damage to the family car is $5,000. Fred's wife has medical expenses of $3,000. Fred has a PAP with the following coverages: Liability coverages: 100/300/50 Medical payments coverage: $5,000 each 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, a) indicate whether the loss is covered; b) if covered, how much is paid by insurance policy. Assume that each situation is a separate event. Fred's son, age 16, is driving a family car and kills a pedestrian. The family of the deceased pedestrian sues for $500,000. Fred borrows a friend's car to go to the supermarket. He fails to stop at a red light and negligently smashes into another motorist. His friend only has liability insurance with a single limit of $9,000. The other driver's car, valued at $10,000, it totally destroyed. In addition, damages to the friend's car are $3,000. Fred's daughter, Meira, attends college in another state and drives a family car. Fred tells her that no other person is to drive the family car. Meira lets her boyfriend drive the car, and he negligently injures another motorist. The boyfriend is sued for $50,000. Fred's wife is driving a family car in a snowstorm. She loses control of the car on an icy street and smashes into the foundation of a house. The property damage to the house is $20,000. The damage to the family car is $5,000. Fred's wife has medical expenses of $3,000
