Celeste has Liability coverage limits on her PAP of 100/200/50. She has an accident and finds herself liable for damages awarded in the following order: Bodily injury to A - $250,000
Bodily injury to B - $30,000
Bodily injury to C - $150,000
Property Damage to D - $48,000
Which of the following is true?
A) Her insurer will pay $150,000 to C.
B) Her insurer will pay $250,000 to A.
C) Her insurer will pay $30,000 to B.
D) Both A and C are true.

Question

Quizplus · Accepted Answer

Her insurance policy has liability coverage limits of 100/200/50, which means $100,000 per person for bodily injury, $200,000 per accident for bodily injury, and $50,000 per accident for property damage. Therefore, the insurer will pay $30,000 to B since it is within the per person limit for bodily injury. The amounts for A and C exceed the per person limit and the total per accident limit, so they will not be fully covered as stated in options A and C. The property damage to D is within the $50,000 limit, but this was not an option provided.

Celeste Has Liability Coverage Limits on Her PAP of 100/200/50