Question

Assume that Herb Avoir, the vegetarian, owns the PAP discussed in this chapter and reproduced as an Appendix to the text. His policy has the following limits: A = $100,000 B = $3,000 C = $100,000 D = $250 deductible—collision $250 deductible—other than collision Assume that each of the events described in the following situations occurs separately. The actual cash value of Herb’s car is $14,500. You are to calculate the amount Herb’s insurer will pay.

12. Herb runs a stop sign and collides with a parked car causing $4,000 of damage to each vehicle.

1. $8,000.00
2. $7,500.00
3. $7,750.00
4. $6,000.00

13. While using his car as a delivery vehicle for a local florist, Herb is struck by an uninsured motorist. He has $15,000 in medical expenses and lost wages. His car is destroyed (replacement value is $16,000). How much will Herb recover from Part C coverage?

1. $31,000.00
2. $16,000.00
3. $15,000.00
4. Undertermined from information

Answer 1

12 .Herb has paid the premium for both deductable- colusion and deductable- other than collusion and the damaged amount is also within the limits so he will get full recovery of 8000 on part C.