UltraMetalBaboon19
Policyholder declarations page The auto loss situations…
Policyholder declarations page
The auto loss situations described below occur to Fred Jones, a single 22-year-old man who has the following coverage limits on the personal auto policy covering his 1968 Chevrolet Sport van (replacement cost of $30,000, with $27,000 depreciation):
Coverage A: Liability Coverage:
Bodily Injury Liability $15,000 each person
Bodily Injury Liability $30,000 each accident
Property Damage Liability $5,000 each accident
Coverage B: Medical Payments: $2,000 each person
Coverage C: Uninsured Motorist:
Bodily Injury Liability $15,000 each person
Bodily Injury Liability $30,000 each accident
Coverage D: Physical Damage:
Purchased Loss other than Collision coverage only ($1000 deductible)
Multiple choice questions (35 Points)
While driving in a rainstorm, Fred loses control of his van and hits an unoccupied car parked in a parking spot along the street. The car, a Mazda Miata convertible ($23,500 replacement cost with $17,500 depreciation), is a total loss. In their investigation of the accident, the police cite Fred for driving over the speed limit. How much will Fred’s insurer pay for damage to the Miata? (5 points)
Refer to the previous question. Fred causes significant damage to his van, and the cost to repair the vehicle equals $11,000. How much, if any, will Fred receive for the damage to the van. (5 points)
Fred negligently runs over Daphne while she is legally crossing the street in a crosswalk. The police cite Fred for negligently causing the accident. Daphne files a lawsuit for $15,000 to reimburse her for her medical expenses and lost wages, as well as an additional $30,000 for pain and suffering. The cost to defend Fred from the lawsuit equals $17,000. How much will Fred’s insurer pay on these three monetary amounts? (5 points)
While driving the van, Fred is struck by an uninsured car driven by a car thief. The thief who stole the car is cited by police for causing the accident. Fred is hospitalized and incurs total medical expenses of $13,000. Fred’s lost wages equal $3,000 for the time he is out of work. How much, if any, will Fred’s insurer pay on these two expense amounts? (5 points)
While jogging down a street, Fred is struck by a forty-year-old man driving a pick-up truck that is legally insured for his state’s minimum insurance requirement. Fred suffers $5,000 in emergency room bills. Fred also cannot work for three weeks, resulting in the loss of $2,000 of wages. The truck driver is cited by the police for causing the accident. Please note that you should not assume that Fred can collect from the driver. Instead, focus your answer on how much, if any, that Fred can collect from his own auto insurer. (5 points)
Fred takes his friend Velma to a mall. At the end of the day, they return to the parking lot and discover that thieves stole Velma’s laptop computer (replacement cost of $4000 with $2,000 depreciation), which was in the back seat of the van. The van was not locked. How much if any will Fred’s PAP insurer pay for the stolen item? (5 points)
Fred starts driving for Uber. While driving a customer to the airport, Fred hit the rear bumper of a car in front of him because he was driving too fast. Fred is cited by the police for causing the accident. The car that Fred hit sustains $4000 in damages. The damaged car has replacement cost value equal to $28,000 with depreciation of $6000. (5 points)
