7 - Auto & Home Insurance (Key).docx

7 - Auto & Home Insurance (Key).docx - 1 Application...

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Application Activity Auto & Home Auto Insurance 1. What is the minimum BIPD liability coverage required for a driver in the state of Texas? According to class is this amount sufficient? 30/60/25 2. While Jon's truck was parked on the street, a hit-and-run driver causing $1,000 worth of damage hit it. What type of coverage(s) could pay for the damage to Jon's truck? (Assume Jon has all of the coverages) {Note: there are two} Underinsured/Uninsured & Collision (See note about this on collision slide in PowerPoint). Use the following information to answer the next four questions. Dr. T.J. Lopez has an automobile insurance policy with the following limits: 100/300/50 Bodily Injury & Property Damage liability $5,000/person Personal Injury Protection 20/40/15 Uninsured Motorist $200 deductible Collision deductible $50 deductible Comprehensive deductible Dr. Lopez and his daughter were on the way to the hospital and were involved in a 3-car accident that was Dr. Lopez's fault. The following damages resulted from the accident: $ 2,000 Dr. Lopez's injuries $35,000 Driver #1 injuries $10,000 Driver #2 injuries $15,000 Passenger's injuries in car #1 $ 1,200 Daughter's injuries $ 5,000 Damage to Dr. Lopez's car $21,000 Damage to the other automobiles $45,000 Damage to the store the cars hit $ 3,500 Dr. Lopez's lost income due to the accident 3. How much will Dr. Lopez's auto insurance policy pay for the bodily injury (BI) liability claims in this accident? a $60,000 $35,000 Driver #1 injuries $10,000 Driver #2 injuries $15,000 Passenger's injuries in car #1 NOTE: none of the injuries exceed the individual limit of 100K/person & total is under 300K all are covered. 1
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4. How much will Dr. Lopez's auto insurance policy pay for the property damage liability claims in this accident? a. $50,000 $21,000 Damage to the other automobiles $45,000 Damage to the store the cars hit Total damage $66K; PD limit was 50K.. which is all the policy will pay. Dr. Lopez had inadequate coverage. 5. How much will personal injury protection pay in this accident for ONLY Dr. Lopez's personal injuries to himself?
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  • Spring '08
  • KITT

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