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 $28,000.

(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 $200,000. 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 $3,000. Two high school students were making out in the car. Both sustained injuries requiring medical treatment of $500 each.