Final answer:
The insured's 100/300 bodily injury liability insurance covers up to $100,000 per person and $300,000 per accident. The total awarded damages are $300,000, but the per-person limit results in $50,000 not being covered by the policy. Thus, the correct answer is C) $50,000.
Step-by-step explanation:
The student's question involves understanding how automobile insurance applies in a situation where an insured individual is at fault in an accident and there are multiple claimants against the policy. The insurance coverage in question is described as 100/300 bodily injury liability, which usually means up to $100,000 coverage per person and up to $300,000 total coverage per accident. In the scenario presented, there are three other individuals with awards totaling $150,000, $75,000, and $75,000.
Doing the math:
- The first person's award of $150,000 exceeds the per-person limit of $100,000, meaning $50,000 of their award is not covered.
- The awards to the other two individuals, being $75,000 each, are within the per-person limit and therefore fully covered.
- The cumulative awards amount to $300,000 ($150,000 + $75,000 + $75,000), which is equal to the per-accident limit.
Hence, the insurance policy will cover $250,000 ($150,000 for the first person after applying the per-person limit plus the full $75,000 for each of the other two), and there will be $50,000 ($300,000 in total awards minus $250,000 covered by insurance) that is not covered by the insurance.
The correct answer is C) $50,000.