Question

Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car had damage of $9,800, and the car she struck had damage of $8,100. After a lengthy court suit, the couple struck were awarded personal injury judgments of $15,700 and $6,700, respectively.

a. What will the insurance company pay for this accident? Amount paid $

b. What is Marika’s responsibility? Amount paid $

Answer 1

Ans:

a. What will the insurance company pay for this accident :

Amount paid

$21,700

Explanation:

Bodily injury to others: 10/20. This means that the insurance company will pay damages to people injured or killed by your auto up to $10,000 for injury to one person per accident or a total of $20,000 for injuries to two or more people per accident.

Property damage to someone else's property: 5. The insurance company will pay up to $5,000 for damages that you have caused to the property of others.

Insurance company pays	$
Bodily ( $10,000 + $6,700)	16,700
Property	5,000
Total	21,700

Ans:

b. What is Marika's responsibility :

Amount paid

$18,600

Explanations:

Marika pays	$
Bodily ( $15,700 - $10,000)	5,700
Property	9,800 no collision
Property damage not covered by compulsory ($8,100 - $5,000)	3,100
Total	18,600