81. Molly borrows her friend Dom's car to run to the grocery store. On the way home, she rear-ends a van, injuring the driver and 3 other passengers. Each of the passengers suffers $45,000 in injuries, while the driver suffers $40,000. Assuming Dom has a liability policy with limits of $50/100/$50, while Molly has $25/50/$25 coverage, how much will the primary policy cover?
Answer: D
$100,000
The primary liability policy will cover $100,000, which is the maximum limit for bodily injury per accident as specified in Dom's liability policy. This amount is derived from the coverage limits of $50,000 for each person injured, up to a total of $100,000 per accident.
A) $150,000
This option is incorrect because it exceeds the maximum liability coverage provided by Dom's policy. Dom's policy has limits of $50,000 per person and $100,000 per accident, meaning it cannot cover more than $100,000 total for all injuries sustained in this incident.
B) $50,000
While this amount represents the limit for each individual injured, it is not the total coverage for the accident. Since there are multiple injured parties, the policy's total coverage per accident is capped at $100,000, making this option insufficient to cover all injuries.
C) $25,000
This option reflects Molly's personal liability coverage limit, which is not applicable in this case because Dom's policy is the primary coverage. Thus, it does not accurately represent the amount the primary policy will cover in this accident.
D) $100,000
This option is correct as it aligns with the total liability coverage limit of Dom's policy for bodily injuries resulting from a single accident. The policy covers up to $50,000 for each individual injured and a maximum of $100,000 for all injuries combined.
Conclusion
The primary liability policy will indeed cover $100,000, which is the maximum limit for bodily injury per accident under Dom's policy. The other options fail to capture the total liability coverage available in this scenario, making $100,000 the definitive correct answer.