Mr. Tibbs owns the Homeowners (HO-2) and the Personal Auto Policy found in your texts appendices. The following limits apply.

HOMEOWNERS PERSONAL AUTO POLICY

LIMITS: LIMITS:

A = $65,000

B = $6,500 A = $100,000/$300,000/$50,000

C = $32,500 B = $1,000

D = $13,000 C = $100,000/$300,000

E = $100,000 D = ACV $200 Ded. Collision

F = $500 $0 Ded. Other Than Collision

$100 flat deductible Section I One Vehicle listed on Policy

Replacement cost of the dwelling

is $72,000. Replacement cost of the

other structure is $10,000 If a loss occurs to

real or personal property 1/3 depreciation

applies, therefore, ACV = 2/3 replacement cost.

Your assignment is to determine if the following situations are covered by the above policies. If there is coverage how much should be paid? the above two policies are the only ones in existence. No other contracts are to be considered. Each event is a separate occurrence.

Mr. Tibbs rents out a room to two students. One of the students falls down the stairs. Hospital costs equal $4,500. In addition, all tuition was lost due to the inability to complete the semester. The student sued Mr. Tibbs for $5,500.