Kyle has a PAP with liability limits of $50,000/ $100,000/$25,000. He failed to
ID: 2782026 • 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 answerExplanation / Answer
Kyle has a PAP with liability limits of $50,000/ $100,000/$25,000; as he crossed a red light therefore he is legally liable for the property damage to the van and bodily injuries to the passengers.
The Kyle’s insurer pays under liability coverage (Part A) in following manner-
Damage to the van = $15,000 (Full amount)
Bodily injury to Passenger A = $15,000 (full amount)
Bodily injury to Passenger B = $50,000 (limited to $50,000 per person under the policy)
Bodily injury to Passenger C = $10,000 (full amount)
Total amount = Damage to the van + Bodily injury to Passenger A + Bodily injury to Passenger B+ Bodily injury to Passenger C
= $15,000 + $15,000 + $50,000 +$10,000
=$90,000
Kyle is not covered under liability coverage (Part A) for his damages therefore the liability coverage under policy will not pay his medical bills, car damages or loss in wages.
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