Question

Your automobile insurance policy contains policy limits of 200/300/100. If you have an accident in which you are deemed at fault and two people sustain bodily injury that result in combined claims of $450,000, how much of the claim will not be covered under your insurance policy?

A) $250,000
B) $150,000
C) $350,000
D) $450,000

Answer 1

The insurance policy will not cover $150,000 of the claim. The correct option is B.

Step-by-step explanation:

In the given scenario, the automobile insurance policy contains policy limits of 200/300/100. These numbers represent coverage limits for bodily injury liability per person, bodily injury liability per accident, and property damage liability, respectively.

Given that the combined claims for bodily injury in the accident amount to $450,000, it exceeds the bodily injury liability limit per accident. As a result, the insurance policy will not cover the portion of the claim that exceeds the policy limit.

Therefore, the amount that will not be covered under the insurance policy is $150,000 (450,000 - 300,000).

Hence, Option B is correct.