Kyle has a split limit 100/300/50 automobile insurance policy. Several weeks ago, he was in accident...

Kyle has a split limit 100/300/50 automobile insurance policy. Several weeks ago, he was in accident in which he was found to be at fault. Five passengers were injured in the accident. Each of the passenger will be awarded $80,000 as consequences of Kyle's negligence. Calculate the amount that will be covered by insurance policy and amount that Kyle will pay out from his pocket. Explain each amount incurred

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Expert Solution

100/300/50 means

$100000 will be there for bodily injury liability each individual

$300000 will be for max bodily injury.

$s50000 will be there for property damage.

In accident 5 individuals were injured. Each will be awarded $80,000, so total compensation will be= 80000*5=$400000

SO As per the above explanation maximum limit of insurance is $300000

So 400000-300000=100000 will be paid by Kyle.

Rahul Sunny answered 1 year ago

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