Jake drove Amanda's truck to the football bowl 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 insurance 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 Jake was driving Amanda's truck, her policy would be the primary insurance coverage. Her policy would pay up to its limits of $50,000, then Jake's policy would kick in to cover the remaining $35,000. Therefore, the damages would be paid with $50,000 from Amanda's policy plus $35,000 from Jake's policy.

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