Mr. Tibbs owns the Homeowners (HO-2) and the Personal Auto Policy found in your texts

appendices. The following limits apply.

HOMEOWNERS LIMITS: PERSONAL AUTO POLICY LIMITS:

A = $65,000 A = $100,000/$300,000/$50,000

B = $6,500 B = $1,000

C = $32,500 C = $100,000/$300,000

D = $13,000 D = ACV $250 Ded. Collision

E = $300,000 ACV $500 Ded. Other Than Collision

F = $500

$500 flat deductible Section I

Replacement cost of the dwelling is $72,000. One vehicle listed on policy

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.

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

1. Mrs. Tibbs leaves a suitcase filled with clothing in a motel room. Twenty miles down the road, she remembers, and returns to collect it. Upon entry, she discovers that the suitcase is missing. Replacement cost of goods and suitcase is $4,000.

2. Mr. Tibbs fails to trim his bushes near the street. The bushes obstruct the view of traffic turning the corner. A motorist, when inching out to see around the bushes, is struck by a car. Both cars are totaled, and each driver sues Mr. Tibbs for $150,000 in bodily injury and $20,000 property damage.

3. Dr. Tibbs is a medical doctor who operates out of an office in his house. A patient comes to see Dr. Tibbs. While sitting in a chair in the waiting room, the chair breaks causing back injuries to the patient. The patient sues for medical expenses of $7,000, loss of wages of $16,000, and pain and suffering of $20,000.

4. Mr. Tibbs takes his car to a repair shop. While the mechanic is test driving the car, he negligently rear ends a car driven by John while stopped at a red light. The mechanic and Mr. Tibbs are both sued separately by John for his injuries of $80,000 and property damage (Johns car) for $15,000.