MartinL_PFP3361_Asgmt3

# MartinL_PFP3361_Asgmt3 - Leanne Martin PFP 3361 Prof...

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Leanne Martin PFP 3361 Prof. Cummings 22 February 2011 Unit 3 Assignment Part I: Insurance Coverage Calculations (15pts, roughly 4 points per question) REMEMBER : Make it very clear what your final answers are, but please show your work. 1. Lina Green has 20/40/15 automobile liability coverage and is involved in an accident that is her fault. Damages suffered by the other parties in the accident are as follows: First person—bodily injury \$10,000 Second person—bodily injury \$12,000 Third person—bodily injury \$25,000 Property damage \$18,000 How much of these claims will the insurance company pay? The company will pay only \$40,000 for the injuries to the claimants and \$15,000 for the damage. The amounts per person injured depends on when their claim is submitted. The company will pay up to \$20,000 a person until the 40 max is reached. For the third person, they will only be paid \$20,000. How much will not be covered by the insurance company and therefore come out of Lina's budget? \$3000 of property damage (18,000-15,000) and \$7,000 in injuries (47,000-40,000) 2. Justin has auto insurance coverage of 25/75/15 for his new Nissan. Being a nice guy, Justin lets his uninsured girlfriend use the car, and she is involved in a major accident that is her fault. Following are the damages: Bodily injury Other driver injury \$15,000 First passenger in the other car \$30,000 Second passenger in other car \$2,000 Property damage Other car \$9,000 Telephone pole \$2,000 How much will Justin's auto insurance pay for the above damages? How much will not be covered by Justin’s auto insurance?

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MartinL_PFP3361_Asgmt3 - Leanne Martin PFP 3361 Prof...

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