Alan has a PAP with the following coverages:
Liability coverages: $100,000/$300,000/$50,000
Medical payments coverage: $5,000 each person
Uninsured motorists coverage: $25,000 each person
Collision loss: $250 deductible
Other-than-collision loss: $100 deductible
With respect to each of the following situations, indicate whether the loss is covered and the amount payable, if any, under the policy. Assume that each situation is a separate event.
Alan’s son, age 16, is driving a family car, runs a red light, and kills a pedestrian. The family of the deceased pedestrian sues and damages are awarded in the amount of $500,000.
Alan borrows a friend’s car to go to the supermarket. He fails to stop at a red light and negligently ...