John occasionally borrows the car of his friend,Sophie.Sophie has a PAP with liability limits of 100/300/50.John also has a PAP,and his liability limits 250/500/50.John had an accident while using Sophie's car and was found to be legally liable for $300,000 in bodily injury liability.How much will be paid by each policy?

Question

Quizplus · Accepted Answer

Sophie's policy will pay up to $100,000 per person and up to $300,000 per accident for bodily injury liability. Since John was found to be legally liable for $300,000 in bodily injury liability, Sophie's policy will pay the maximum limit of $100,000 and John's policy will pay the remaining $200,000 (the difference between $300,000 and Sophie's $100,000 limit). Therefore, Sophie's policy will pay $100,000 and John's policy will pay $200,000.

John Occasionally Borrows the Car of His Friend,Sophie