Question

Background: Jane owns the typical personal automobile policy Assume that each accident, as described in the following scenarios, occurred separately. The actual cash value of Jane's car is $17,400. The policy has the following limits: A (liability) = $100,000 B (medical payments) = $3,000 C (uninsured motorists)= $100,000 D (damage to your auto) = $250 deductible - collision; $250 deductible - other-than-collision Scenario #1: While using her car as a delivery vehicle for a local orchard, Jane was struck by an uninsured motorist. She had $10,000 in medical expenses and lost wages. Her car was totaled (the replacement value is $14,500). Scenario #2: Jane ran a stop sign and collided with a parked car, causing $3,250 of damage to each vehicle. Scenario #3: Jane hit a deer on a country road. Her car was a total loss. Scenario #4: Jane borrowed her neighbor's car for a week, while the neighbor was on vacation. While driving the neighbor's car, Jane ran into a pole and caused $4,000 of damage to the neighbor's car. Illustrate your calculations for determining your final answers and briefly explain how you arrived at these answers

Answer 1

	Automobile Policy Details
1	Third Party Liability	$ 100,000.00
2	Medical Payment	$      3,000.00
3	Uninsured Motorists	$ 100,000.00
4	Damage to Own auto
	deductible - collision	$          250.00
	other deductible	$          250.00
		$          500.00
	Actual Cash Value of Jane's Car	$    17,400.00
	Scenario#1
	Medical Expenses	$    10,000.00
	Amount to be received from Insurance Company	$      3,000.00
	Net medical expenses to be borne by Self	$      7,000.00
	Replacement Value of Car	$    14,500.00
	Deductible for damage	$          500.00
	Amount to be received from Insurance Company	$    14,000.00
	Scenario#2
	Damage to parked car	$      3,250.00
	Amount to be received from Insurance Company	$      3,250.00
	Damage to own Car	$      3,250.00
	Amount to be received from Insurance Company for repair upto actual cash value	$      3,250.00
	Scenario#3
	Actual Cash Value of Jane's Car	$    17,400.00
	Deductible for damage	$          500.00
	Amount to be received from Insurance company	$    16,900.00
	Scenario#4
	Amount to be borne for damage to neighbour's car (assuming no insurance)	$      4,000.00