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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