Question

Logan Simmons has split limit 150/200/100 automobile liability insurance. Several months ago Logan was in an accident in which he was found to be at fault. Four passengers were seriously injured in the accident and were awarded $242,000 each because of Logan's negligence. How much of this judgment will Logan's insurance policy cover? What amount will Logan have to pay out-of-pocket?

Logans insurance policy will cover $__
Logan will have to pay out-of-pocket $__

Answer 1

Liability split cutoff inclusion of 150/200/100 methods $ 150,000 substantial injury risk inclusion for every individual, $ 200,000 all out most extreme real injury liablity inclusion, and $ 100,000 of property harm obligation inclusion.

All out four travelers were harmed in a mishap and were granted $ 242,000 each for real injury. Henceforth Total risk of L is 4 people x $ 242000 = $ 968,000

Reimbursement Amount :

Maximum reimbursement amount is Minimum value from set of actual liability and maximum coverage under policy, Here actual liability is $ 968,000 and coverage policy is $ 200,000

Hence Logan Simmons will get reimbursement of $ 200,000

Amount pay by L:-

Logan Simmons will have to pay $ 768,000 out of his pocket towards accident Liability.