Question

Suzie Speedy is insured for bodily injury in the amount of 10/20. She is at fault in an accident in which Vic Victim is injured. Also injured in the accident is a pedestrian, Billy Bystander. Vic's medical expenses total $18,000; Billy's come to $6,000. How much will the insurance pay?

Answer 1

Answer:

10/20 means $10,000 each occurrence/ $20,000 policy limit

so

Vic will get $10,000 from the insurance company (the "per occurrence" limit) and Billy will get $6,000 because there's still an additional $10,000 left over for "policy limit"  

Insurance will pay $16,000

Step-by-step explanation:

Answer 2

So, you add 18,000 + 6,000= 24,000
Since 10/20 or 1/2 is covered by insurance you'd divide the amount in half.
24,000 divided by 2= 12,000
So, the answer is $12,000.

I hope this helps:)