Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car had damage of $9,800, and the car she struck had damage of $8,100. After a lengthy court suit, the couple struck were awarded personal injury judgments of $15,700 and $6,700, respectively. a. What will the insurance company pay for this accident? Amount paid $ b. What is Marika’s responsibility? Amount paid $
Ans is a. What will the insurance company pay for this accident : Amount paid $21,700 Explanation: Bodily injury to others: 10/20. This means that the insurance company will pay damages to people injured or killed by your auto up to $10,000 for injury to one person per accident or a total of $20,000 for injuries to two or more people per accident. Property damage to someone else's property: 5. The insurance company will pay up to $5,000 for damages that you have caused to the property of others. Insurance company pays $ Bodily ( $10,000 + $6,700) 16,700 Property 5,000 Total 21,700 Ans: b. What is Marika's responsibility : Amount paid $18,600 Explanations: Marika pays $ Bodily ( $15,700 - $10,000) 5,700 Property 9,800 no collision Property damage not covered by compulsory ($8,100 - $5,000) 3,100 Total 18,600
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