Mr. Smith has a 50/200/50 liability insurance and a $50,000 PIP insurance. During a snow storm, he hits a fence
and bounces into a store front with 9 people inside. Some are hurt
and sue him. A passenger in Mr. Smith's car
is also hurt.
a.
The store front will cost $35,000 to replace. There was $1750 worth of damage to the fence. How much
will the company pay for?
b.
A professional basketball player was in the store, and due to the injuries, he can never play basketball
again. He sues for $4,000,000 and is awarded the money in court. How much will the insurance
company pay?