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 is 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?

arthur:
fred:
total:

Answer 1

The total amount to be paid = $18000

Explanation:

Arthur: $10000

Fred: $8000

Total: $18000

The numbers 10/20 means 10 stands for $10000 and 20 stands for $20000. In total $20000 will be given to all persons.

So, Fred will get a maximum of $10000, but his bill is $8000, so he will get $8000. And Arthur will get $10000 as this is liability limit. So, both will get a total of $18000.