Question
George has a personal auto policy that provides the following coverages: liability coverage $100,000/$300,000/$50,000, $5,000 medical payments coverage, $25,000/$50,000 uninsured motorists coverage, $250 deductible for
George has a personal auto policy that provides the following coverages: liability coverage $100,000/$300,000/$50,000, $5,000 medical payments coverage, $25,000/$50,000 uninsured motorists coverage, $250 deductible for a collision loss, and a $100 deductible for an other-than-collision loss. 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. George's 19 year old daughter, Susan, lives at home while attending a nearby college. Susan works for an advertising firm that provides Susan with a company car that Susan keeps at home as she never knows when she will be called upon to make a sales call. Susan can also use the car for personal trips. Susan does not have insurance on the company car since it is owned by her employer. Susan is driving her company car on a business visit while George is out shopping in the familys Honda Accord. On his way home, Georges Honda is hit by his daughter driving her company car. Damage to the Honda is $5,000 (ACV = $3,000). Damage to the company car is $2,000 (ACV = $1,700). George suffers injuries that require emergency treatment. The cost of the medical care is $8,000. The daughter suffers minor injuries. Her medical bills total $800.
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