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.

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 two policies above are the only ones in existence. No other contracts are to be considered. Each event is a separate

occurrence.

8. 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.