Question

John occasionally borrows the car of his friend, sophie. sophie has a pap with liability limits of 100/300/50. john also has a pap, and his liability limits 250/500/50. john had an accident while using sophie's car and was found to be legally liable for $300,000 in bodily injury liability for injuries suffered by one person. how much will be paid by each policy?
a.sophie's policy will pay $100,000, john's policy will pay $200,000.


b.sophie's policy will pay $150,000, john's policy will pay $150,000.


c.john's policy will pay the entire amount.


d.sophie's policy will pay $50,000, john's policy will pay $250,000.

Answer 1

Answer:

The correct answer is A. Sophie's policy will pay $100,000, John's policy will pay $200,000.

Explanation:

1. Let's review the information given to us to answer the question correctly:

A. Sophie's Personal Auto Insurance liability limits:

• Bodily injury per person: $ 100,000
• Bodily injury per accident: $ 300,000
• Damage to property per accident: $ 50,000

B. John's Personal Auto Insurance liability limits:

• Bodily injury per person: $ 250,000
• Bodily injury per accident: $ 500,000
• Damage to property per accident: $ 50,000

Bodily injury liability for injuries suffered by one person in the accident John had using Sophie's car: $ 300,00

2.  How much will be paid by each policy?

If John is likely to be covered by the Sophie car owner’s policy as a permissive driver that allows him to occasionally lend the vehicle to Sophie,  each policy will pay:

Sophie's PAP = All the liability limit ($ 100,000)

John's PAP = The remaining amount ($ 200,000)

The correct answer is A. Sophie's policy will pay $100,000, John's policy will pay $200,000.

Answer 2

Answer:

Sophie's policy will pay $100000, John's policy will pay $200000 ( A )

Explanation:

John having a pa with liability limits 250/500/50 means that John has a liability limit of $200000 and since John was the driver of the Sophie's vehicle he will pay $200000 due to the driver policy

and Sophie's policy will pay the remaining $100000 as a secondary payment since she was not the driver when the accident happened .

total liability in Bodily injury suffered by one person during the cause of the accident = $300000