Jake drove Amanda's truck to the football game because his car was broken.On the way home,Jake was involved in an accident that was his fault.The resulting liability damages totaled $85,000.Jake has $100,000 liability coverage on his car,and Amanda has $50,000 on her truck.How would the $85,000 liability damages be paid for this accident?
A)$50,000 from Amanda's policy with no further payment
B)$85,000 from Jake's policy
C)$50,000 from Amanda's policy plus $35,000 from Jake's policy
D)$50,000 from Amanda's policy plus $35,000 out of Jake's pocket
E)$50,000 from Amanda's policy plus $35,000 out of Amanda's pocket.

Question

Quizplus · Accepted Answer

Since Amanda's truck was involved in the accident and Jake was driving it, her insurance policy would be the primary coverage. Her policy would pay up to the policy limit of $50,000. However, since the damages exceed her policy limit, Jake's insurance policy would come into play as secondary coverage. His policy would cover the remaining damages up to his policy limit of $100,000. Therefore, the damages would be paid as $50,000 from Amanda's policy and $35,000 from Jake's policy, for a total of $85,000.

Jake Drove Amanda's Truck to the Football Game Because His