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 policy, which is Dom's liability coverage, will cover a total of $100,000 in damages, which is the maximum limit for bodily injury liability per accident under his policy.
A) $150,000
This option is incorrect because Dom's liability policy does not provide coverage beyond its limits of $50,000 per person and $100,000 per accident. Therefore, it cannot cover a total of $150,000 regardless of the total damages incurred.
B) $50,000
While this figure represents the per person limit of Dom's policy, it does not take into account the total number of injured parties. The policy covers up to $100,000 per accident, which makes this option insufficient to address the overall liability incurred in this incident.
C) $25,000
This option is incorrect as it reflects Molly's personal coverage limit rather than the primary policy in question. Dom's liability coverage is the primary source of payment for the accident, which greatly exceeds Molly's limits.
D) $100,000
This option is correct as it aligns with the total amount that Dom's liability policy covers for bodily injury liability per accident. Given that there are four injured parties, the policy's maximum limit for the entire accident applies.
Conclusion
The correct answer is $100,000, as that is the limit of Dom's liability policy for bodily injury per accident. All other options fail to accurately reflect the coverage limits or the nature of the insurance policies involved in this scenario, confirming that Dom's primary policy is the appropriate source of coverage in this case.