NEED HELP WITH ASSIGNMENT

Assignment 9-1

Part A

Sarah pays cash for a new car and when she drives it off the dealers lot, she hits another car on her way to a friends house to celebrate. The accident is Sarahs fault. She injured the driver of the other car and damaged both her new car and the other drivers car. Sarahs PAP policy provides the following coverages:

Part A 50/100/25

Part D Collision Deductible $500

Other than Collision Deductible $500

Medical Payments $2,000

Rental Reimbursement $25 per day up to 30 days

Determine if the following losses are covered and state what line of coverage would respond:

1. The other driver is hospitalized for 5 days and spends six months in physical therapy with total expenses of $62,000.

2. Sarahs cars bumper, hood, and passenger door are damaged, and the mechanic estimates damage totaling $7,500.

3. Sarah received a moving violation from the attending police officer at the site of the accident. The ticket will cost $250.

4. The other drivers vehicle incurred $10,000 worth of damages.

5. The other driver was unable to go to work for 36 days due to the injuries he suffered and filed a claim for loss wages of $5,600.

6. It took the repair shop 45 days to complete the work on Sarahs vehicle and the rental car company charged her $30 per day, thus a total of $1,350.

7. Sarah went to the doctor several days later due to pain in her lower back, which she believed was due to the accident. Her medical bill was $1,000.

8. Sarah believes her laptop was stolen from her car while the tow truck company was delivering it to the repair shop.

Assignment 9-1 Part B

Michaels home is covered for $250,000 (Coverage A) under a HO-3 policy and his automobile has 25/50/10 (Coverage A) and Uninsured Motorist and Underinsured Motorist coverage of 25/50 and Uninsured Property Damage of $10,000 under his PAP policy.

Determine which of the following losses under each policy would be covered and state what line of coverage would respond:

1. Michael rents a room of his home to a college student and learned that a watch and other jewelry belonging to the student was stolen.

2. Michaels carpet, wood on his stairwell, and several pairs of shoes were damaged by the familys pet dog, Bentley.

3. Michael drives his personal car to his business meetings.

4. Michael returns to his car after enjoying happy hour with friends to find he left his doors unlocked and his fur jacket and iPad were stolen. Would his PAP policy respond?

5. The neighborhood where Michael lives is not in a flood zone. Recently, the community experienced mudslides, which caused to the basement of the familys home.

6. Janet, Michaels wife, was the victim of identity fraud and had to take 2 days off from work to meet with representatives of the police department.

7. Michael hit a deer and damaged his automobile.

8. Michael borrows his friends car while his vehicle is being serviced and hits a mailbox while parking.

9. Michaels wife frequently gives rides to several other children attending their daughters nursery school.

10. The familys dog, Bentley, ran out of the yard and bit the neighbors 5 year old son.