Kyle has a PAP with liability limits of $50,000/ $100,000/$25,000. He failed to
ID: 2568578 • Letter: K
Question
Kyle has a PAP with liability limits of $50,000/ $100,000/$25,000. He failed to stop at a red light and hit a van, which sustained damages of $15,000. Three passengers in the van were injured and incurred the following bodily injuries: Passenger A, $15,000 Passenger B, $60,000 Passenger C, $10,000 Kyle was also injured and incurred medical bills of $10,000. His car sustained damages of $10,000. Because of his injury, Kyle was unable to work and lost $5,000 in wages. How much will Kyle's insurer pay under the liability cover-age (Part A) section of his PAP? Explain your answer.Explanation / Answer
Calculation of Payment by Insurance Company Under Part A :-
50000 is limit per passanger for bodily injury and 100000 is limit for toal bodily injury.
Payment for bodily injury = 15000 + 50000 + 10000 = 75000
Property damage limit is 25000, therefore full damages of 15000 will be paid
Total payment by insurance compoany under part A = 75000 + 15000
= 90000
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