Question

Joyce was injured by an uninsured drunk driver while she was riding in a friend's car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries? (a) Each policy will pay $35,000 (b) Joyce's policy will pay $50,000 and the friend's policy will pay nothing (c) Joyce's policy will pay $50,000 and the friend's policy will pay $20,000 (d) The friend's policy will pay $50,000 and Joyce's policy will pay $20,000

Answer 1

(d) The friend's policy will pay $50,000 and Joyce's policy will pay $20,000.

Step-by-step explanation:

Answer 2

(d) The friend's policy will pay $50,000 and Joyce's policy will pay $20,000.

Step-by-step explanation:

Since Joyce was the only person that was injured and her injuries cost $70,000, her friend's PAP will cover the damage as maximum as possible (that is the friend's PAP will cover as much as possible which is $50,000).

The excess ($20,000) will be covered by Joyce.

So option d. is correct $50,000 from the friend's policy and $20,000 from Joyce's policy.