OBJECTIVE QUESTIONS Assume that Herb Avoir, the vegetarian, owns the PAP discussed in this chapter and reproduced as an Appendix to the text. His policy has the following limits: A = $100,000 B = $3,000 C = $100,000 D = $250 deductiblecollision $250 deductibleother than collision Assume that each of the events described in the following situations occurs separately. The actual cash value of Herbs car is $14,500. You are to calculate the amount Herbs insurer will pay.

Herb negligently collides with a farm tractor. The tractor is on the highway to get from one farm to another. Herb was at fault. The farmer successfully sues for $80,000 in bodily injury and $21,000 in property damage to his tractor. The lawyers charge $10,000 to defend Herb in court.

A. $80,000.00

B, $100,000.00

C. $101,000.00

D. $102,000.00