Answer: 14,000 $ Max will be paid and 5000$ per person.
Step-by-step explanation:
In this case, we can assume the following:
1. That the policy covers only the insured one and not the passengers
2. The policy cover all the injured.
Now, the policy covers 5000$ of medical treatment, so, the medical treatment for the insured is 7000$.
To this quantity you'll have to take out the policy coverage which is 5000$, so: 7000 - 5000 = 2000$.
Finally, we just have to to the sum, of all quantity, because the passengers are not included in the policy, therefore:
8000 + 4000 + 2000 = 14000 $.
That is the maximum paid of all, and 5000$ will pay the policy for the injured only.
Now, if we assume that the passengers are also covered by the policy, then:
7000 - 5000 = 2000
8000 - 5000 = 3000
4000 - 5000 = -1000 it won t pay anything.
So if we sum 5000 + 5000 + 4000 = 14000$.
We got the same result assuming the policy with all.
Therefore the final answer is that the policy will pay 14000$ for all.
