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?
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"
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.
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