1. Joe purchased auto insurance from Atlas Insurance Company. Joe ran a red light and hit two other cars with multiple passengers, causing severe injuries. The claims against Joe are as follows:

• Passenger 1 files a bodily injury claim of $50,000.
• Passenger 2 files a bodily injury claim of $100,000.
• Passenger 3 files a bodily injury claim of $150,000
• Passenger 4 files a bodily injury claim of $200,000.
• Passenger 5 files a bodily injury claim of $250,000
• Passenger 6 files a bodily injury claim of $300,000.
• In addition, Joe incurs total legal expenses of $50,000 settling all claims.

a. Assume Joe purchased split bodily injury limits of $100,000 per person/$500,000 per accident.

b. How much will Atlas Insurance Company pay in losses and legal expenses?