Joe has a Personal Auto Policy beside Liability of 25/50/25. He hits a car near 4 occupants from Minnesota, adjectives whom are hurt. They all sue. The first sues for $20,000; the second sues for $35,000 the third sues for $22,000; the fourth sues for $18,000. The sports car Joe hit has $8,000 contained by damage. The company spends $20,000 on a imperative firm for defense. Ignoring any PIP or Medical Payments, what is the total cost to the company for Joe's claim?
a. $50,000
b. $70,000
c. $78,000
d.$90,000
I know the correct answer is 'C' I just do not figure out why. Please help!
Answers: The max bodily injury payout per personage is $25,000. The max bodily injury payout per accident is $50,000. Since near were 4 injured family, the $50,000 would have to be split among them, next to not one person getting more than $25,000. So explicitly the $50,000. The property damage is singular $8,000 (the max on that is $25,000 so Joe is OK there).
So,
$50,000 bodily injury compensated
$ 8,000 property damage salaried
$20,000 defense paid
$78,000 total
In this policy, defense is "outside" the policy precincts. It would state this in the policy. Sometimes defense is "inside" the policy ends so anything paid to safeguard the insured reduces the liability confines available to be paid to others. You would enjoy to read the policy to know whether defense is inside or outside the policy limits.
This is also assuming he have no collision coverage for damages to his own car.
Now, if the other nation get awarded their bodily injury amounts surrounded by court, the out of pocket for Joe is $45,000. This is the difference in his coverage to his amount owed to the injured party. They will have to any go after Joe directly or collect below their underinsured motorists coverage on their auto policies & let their insurance companies shift after Joe for that amount.
I hope this explains it to you.
you said it your self The Company spends 20,000 on a law defense ,,,,,,,,,,, and have the amounts lowered ,, just because the ancestors sued for that amount doesn't mean i.e. what they got
a. $50,000
b. $70,000
c. $78,000
d.$90,000
I know the correct answer is 'C' I just do not figure out why. Please help!
Answers: The max bodily injury payout per personage is $25,000. The max bodily injury payout per accident is $50,000. Since near were 4 injured family, the $50,000 would have to be split among them, next to not one person getting more than $25,000. So explicitly the $50,000. The property damage is singular $8,000 (the max on that is $25,000 so Joe is OK there).
So,
$50,000 bodily injury compensated
$ 8,000 property damage salaried
$20,000 defense paid
$78,000 total
In this policy, defense is "outside" the policy precincts. It would state this in the policy. Sometimes defense is "inside" the policy ends so anything paid to safeguard the insured reduces the liability confines available to be paid to others. You would enjoy to read the policy to know whether defense is inside or outside the policy limits.
This is also assuming he have no collision coverage for damages to his own car.
Now, if the other nation get awarded their bodily injury amounts surrounded by court, the out of pocket for Joe is $45,000. This is the difference in his coverage to his amount owed to the injured party. They will have to any go after Joe directly or collect below their underinsured motorists coverage on their auto policies & let their insurance companies shift after Joe for that amount.
I hope this explains it to you.
How do I verbs my vehicle title...
you said it your self The Company spends 20,000 on a law defense ,,,,,,,,,,, and have the amounts lowered ,, just because the ancestors sued for that amount doesn't mean i.e. what they got
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