Question

Mr. Cousins has 100/300 bodily injury insurance. He was in an auto accident caused by his negligence. Five people were injured in the accident. They sued in court and were awarded money. One person was awarded $150,000, and each of the other two was awarded $95,000. How much will the insurance company pay for these lawsuits

Answer 1

Answer: The amount to be paid by the insurance company is $290,000.00

Explanation: An insurance is a means of hedging against uncertainties. It is a riak management technique used to protect the insured against any eventuality. In insurance, a 100/300 coverage means that you have coverage of $100,000 bodily injury liability insurance per person and $300,000 total bodily injury liability insurance per accident.

As such, for the lawsuit against Mr Cousins, the insurance company will pay $290,000 that is $100,000 to the first person who sued for $150,000and $95,000 each to the other two individuals.

Answer 2

$290,000

Step-by-step explanation:

Given that

Bodily injury insurance = 100/300 = 1/3

Total number of people injured = 5

1 person received = 150000

And 2 received 95000

This means that the insurance company will give the first person 100,000 and the remaining two 95,000 each making a Total of

100000 + 95000 + 95000

= $290,000.

NOTE: The 100/300 insurance policy means that the insurance company will cover up to $100,000 bodily injury sustained by a single person and up to $300,000 total of bodily injury per accident.