George has a personal auto policy that provides the following coverages: liability coverage $150,000/$300,000/$50,000, $5,000 medical payments coverage, $25,000/$50,000 uninsured motorists coverage, $400 deductible for a collision loss, and a $50 deductible for an other-than-collision loss. With respect to each of the following situations, indicate whether or not the losses are covered, and if possible, the dollar amounts that would be paid by the insurance company. Assume that each situation is a separate event. Clearly identify what section of the policy is controlling and why the event is either covered or not covered.

(a) George's son, age 16, is driving a family car and kills a pedestrian in a drag racing contest on an isolated stretch of highway. The heirs of the deceased pedestrian sue for $175,000. The family car is destroyed. It has an actual cash value of $14,000 and a replacement cost of $29,000.

(b) George's daughter, Cindy, attends college in another state and drives a family auto. George tells her not to allow anyone else to drive the car. Cindy lets her boyfriend drive the car and he negligently injures another motorist. The boyfriend is sued for $145,000. The boyfriend has his own auto policy with minimum limits of $15,000/$30,000/$5,000 for Coverage A.

(c) George is driving home from work and hits a deer. The damage to the car is $800. The lights won't work, but George decides to drive home anyway. He fails to see a car parked on the street next to his house and crashes into it. Damage to the other car is $5,500. Two high school students were making out in the car. Both sustained injuries requiring medical treatment of $700 each.

(d) George owns a vintage 1970 car that he is fixing up in his garage. The car is not listed on Georges auto insurance policy and George carries no insurance on this vehicle. Georges daughter takes the vintage car for a ride while George is out shopping in the familys minivan. On his way home, Georges minivan is hit by his vintage car driven by his daughter. Damage to the minivan is $4,000. Damage to the vintage car is $2,000. George suffers injuries that require emergency treatment. The cost of the medical care is $3,000. The daughters boyfriend is also in the vintage car and suffers minor injuries. His medical bills total $700.

(e) George uses his family car, a four-door Toyota Camry, for business trips, taking clients and company materials from the home office to a conference center 20 miles away. On one of these trips, George is hit by another vehicle, but the other driver doesnt stop. George reports the accident to the police, but the other car is never found. Two passengers in Georges car were injured, each with medical bills of $11,000. Georges car suffered damage of $1,300. Company promotional materials worth $1,500 were also destroyed.