Directions: Determine how much money the insurance company will cover and how much the policyholder will need to pay based on the
types of coverage.
SCENARIO:
On the way to the lake last weekend, Sam & Ann Smith were towing their 20-foot boat on the back of their pickup truck. While approaching the green traffic light, Ann could see that another car, driven by Tom Jones, was going to run his red light and was not going to stop. Ann slammed on her breaks to attempt to stop before the intersection, but slid into the middle of the intersection anyway. Needless to say, you can imagine the impact that the Jones's car caused when it slammed into the side of the Smith's pickup truck.
In a hurry, John & Jane Doe might have been traveling too close behind the Smiths'. The Doe's ended up running into the back of the Smith's boat. Since the boat trailer wasn't quite hitched properly, the accident unhitched the Smith's boat trailer from the back of the pickup. The good news is that the boat only slid 20 feet away and didn't hit the video rental store. The bad news is that it knocked over a pedestrian named Mr. Bullwinkle.
PROPERTY DAMAGE:
• Smith's Pickup - $28,500
• Smith's Boat - $30,000 (totaled)
• Jones's Car - 59,500
Doe's Car - $5,000
BODILY INJURIES:
• Ann Smith: minor bumps & bruises, one broken arm, ER visit = $1,200
• Sam Smith: broken arm, broken leg, punctured lung, concussion, loss of vision in right eye, ambulance, ER visit, 2 nights hospital stay, 26 rehabilitation visits, and
"Pain & Suffering" = $75,680
• Tom Jones: minor bumps & bruises, concussion = $900
• John Doe: broken leg, ambulance, concussion = $3,500
• Jane Doe: Stitches in forehead, dislocated shoulder, 12 rehabilitation visits = $12,000
• Mr. Bullwinkle: broken leg, broken back, hospital stay, 26 rehabilitation visits,'
"Pain
& Suffering" = $100,000 John & Jane Doe have the following auto insurance:
Hometown Insurance Company
Includes:
• $25,000 bodily injury per person $50,000
bodily injury per accident
$10,000
property damage per accident
• $25,000 uninsured motorist per person
• $50,000 uninsured motorist per accident
Sam & Ann Smith have the following auto insurance:
C&C Insurance Company
Includes:
• $25,000 bodily injury per person $50,000
bodily injury per accident
$25,000
property damage per accident
• $1,000 Medical pay per person
• $25,000 uninsured motorist per person
• $50,000 uninsured motorist per accident
• $250,000 collision
Tom & Sue Jones has the following auto insurance:
Duncan Insurance Company
Includes:
• $100,000 bodily injury per person $300,000 bodily injury per accident
$100,000 property damage per accident
• $50,000 uninsured motorist per person
• $100,000 uninsured motorist per accident
• Comprehensive Actual Cash Value- $100
deductible
• Collision Actual Cash Value - $500
deductible