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Jeff Foley has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury liability, $25,000 for property damage liability, and a $1,000 deductible for collision insurance. Compute the amount his insurance will cover in each of the following situations. _____a. Jeff loses control and skids on ice, running into a parked car and causing $6,500 damage to the unoccupied vehicle and $3,900 damage to his own car. _____b. Jeff runs a stop sign and cause a serious auto accident, critically injuring two people. The injured parties win lawsuits against him for $70,000 each. _____c. Jeff’s wife borrows his car while hers is being repaired. She backs into a telephone pole and causes $1,400 damage to the car.
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