(RISK MANAGEMENT & INSURANCE QUESTION)

Barbara was driving her vehicle, and her friend Kevin was a passenger. They were starting a one-week

visit with Kevin's parents, who live in the same state about 150 miles south of the town where Barbara

and Kevin live.

Barbara's vehicle is insured under a PAP listing her as the named insured.

These are the coverages included in the policy:

Coverage A-Liability: $50,000 each person $100,000 each occurrence; Property Damage: $50,000

Coverage B-Medical Payments: $1,000 each person

Coverage C-Uninsured Motorists: $50,000 each person $100,000 each occurrence

To lower her premiums, Barbara decided not to carry Coverage D-Damage to Your Auto on her five-year

old vehicle.About one hour into the trip, as they were traveling in the southbound lanes of the highway, a northbound vehicle crossed the median and struck Barbara's vehicle. This four-door sedan was operated by Louise, who died at the scene.As part of the accident investigation, it was determined that Louise suffered a heart attack, which caused her to lose control of her vehicle and cross the highway.

Louise had a PAP listing herself and her husband as named insureds. These are the coverages included

in the policy:

Coverage A-Liability: $250,000 each person $500,000 each occurrence; Property Damage: $100,000.

Coverage B-Medical Payments: $5,000 each person

Coverage C-Uninsured Motorists: $100,000 each person; $300,000 each occurrence

a. Barbara was severely injured as a result of the accident, for which the court finds Louise liable.

Damages are $210,000 for Barbara's hospital and rehabilitation expenses as well as lost wages for six

months. Which policy will cover these expenses and for what amount?

b. In addition to the damages for medical expenses and lost wages, the court awards $50,000 in prejudgment interest to Barbara. Explain whether this amount is covered under the PAP, which policy

would respond, and for what amount.

c. Barbara's vehicle was carrying several boxes of Kevin's household property, which he intended to store at his parents' home. Is damage to this property as the result of the accident covered under Barbara's

PAP?