Steven owns an automobile and has the minimum required insurance in Ontario. while visiting his uncle...

Steven owns an automobile and has the minimum required insurance in Ontario. while visiting his uncle Bob in Hlifax, Nova Scotia, Steven caused a car accident withe another driver. The driver of the other automobile suffered permanent injuries and sued steven for negligence and won. Steven was found absolutely liable for the other driver's injuries and ordered by the court to pay $550000 in daamage. Assuming steven has a zero deductible, how much will his insurer pay?

-$0

-$200000

-$500000

-$550000

Expert Solution

Even though the minimum required insurance in Ontario is lower and the compensation ordered by a court in a different state is higher and is $550000, so the insurance company will honor this amount.

Correct answer is $550000

jeff jeffy answered 2 years ago

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