In: Finance
Rebecca Fowler was judged at fault in an automobile accident. Four others were awarded damages of $40,000, $40,000, $50,000 and $50,000. Rebecca has 50/150 bodily injury liability coverage. What amount, if any, would not be covered by her insurance?
Select one:
a. $180,000
b. $150,000
c. $50,000
d. $30,000
e. None. The total amount would be covered by insuranc
D.30,000
50/150 means 50,000 is the maximum amount per person per bodily injury will be covered by insurance.
None of the person is awarded an amount greater than $50,000, so every individual payment is within limit.
Maximum total amount per accident to be covered is 150,000.
In the given case total damages amounted to 180,000.
So the amount not covered by insurance will be 30,000.