Multiple Auto Insurance Coverages - Due 2/18
Do you know that a person can be protected not only by their auto insurance policy but also by another person's auto insurance policy? Here is an example: Bob has auto insurance coverage with a $100,000 coverage limit. Bob's car was due for maintenance, so he dropped his car off at Firestone. But Bod need'ed to visit his customer for an important business appointment, so he borrowed a car from his girlfriend, Mary. Mary also has auto insurance on her car with a $50,000 coverage limit. While driving Mary's car, Bob negligently injured another motorist when he failed to stop at a red light. Do you know how their auto insurance will pay the loss? If a court awards a liability payment of $75,000 against Bob, how much if any, will each insurer pay?
Note: Under a primary and excess insurance provision, the primary insurer pays first, and the excess insurer pays only after the policy limits under the primary policy are exhausted.
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Multiple Auto Insurance Coverages - Due 2/18
Do you know that a person can be protected not only by their auto insurance policy but also by another person's auto insurance policy? Here is an example: Bob has auto insurance coverage with a $ 100,000 coverage limit. Bob's car was due for maintenance, so he dropped his car off at Firestone. But Bod needed to visit his customer for an important business appointment, so he borrowed a car from his girlfriend, Mary. Mary also has auto insurance on her car with a $50,000 coverage limit.While driving Mary's car,Bob negligently injured another motorist when he failed to stop at a red light. Do you know how their auto insurance will pay the loss? If a court awards a liability payment of $75,000 against Bob, how-much if any, will each insurer pay?
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Note:Under a primary and excess insurance provision,the primary insurer pays first, and the excess insurer pays only after the policy limits under the primary policy are exhausted.