Question

Sarah Simpson is insured for bodily injury in the amount of 10/20. She is at fault in an accident in which Fred Vail ns injured. Also injured in the accident is a pedestrian, Arthur Abel. Arthur's medical expenses total $16,000, Fred's come to $8,000. How much will the insurance pay?

Answer 1

The fraction 10/20 = 0.50 or 50%.

Steps:

1. Add 16,000 + 8,000

2. Multiply the total by 0.50 to find the amount that the insurance company must pay.

Answer 2

The insurance company will pay a maximum of $20,000.

Explanation:

10/20 represent the highest monetary amount that Sarah's insurance company will pay if someone is injured.

Now, here 2 persons are injured but the top limit is $20,000, so the insurance company will pay $20,000 only.

Arthur's medical expenses total $16,000, Fred's come to $8,000. Totaling to $24,000 but the limit is $20,000.

So, $4000 will be paid by Sarah and $20,000 by the insurance company.