Question

QUESTION:

Charles' wife Mary has a company car furnished to her through her job. One day, Charles runs out of the wax he is using to polish his boat and he decides to go out to the store and get more. Mary's company car is parked behind Charles' car in the driveway, so he grabs Mary's keys and drives her car to the store. On the way back home, Charles has an accident in which he is at fault, and bodily injury and property damage are the result. Which of the following statements is TRUE regarding how this claim will be settled?

Answer 1

The claim for the accident caused by Charles while driving Mary's company car will be settled through Mary's employer's car insurance coverage.

Step-by-step explanation:

In this situation, the claim for the accident caused by Charles while driving Mary's company car will typically be settled through the car insurance coverage provided by Mary's employer. The company car is usually insured under a commercial insurance policy, which typically includes liability coverage for bodily injury and property damage caused by the driver of the car. Therefore, Mary's employer's insurance policy should cover the damages and injuries resulting from the accident.