Reference no: EM132681928
Sam Coleman of Richmond, Virginia, is a single 40-year-old loan officer at large regional bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car.
One Saturday afternoon in late September, Sam visits Unique Motors and buys a new car for $32,000. To obtain insurance on the car, he calls his agent, Lilly Young, who represents White's Insurance Agency, and explains his auto insurance needs. Lilly says that she'll investigate the various options for him.
Three days later, Sam and Lilly get together to review his coverage options. Lilly offers several proposals, including various combinations of the following coverages:
a) basic automobile liability insurance
b) uninsured motorists' coverage
c) automobile medical payments insurance
d) automobile collision insurance
e) comprehensive automobile insurance
Read and answer the following questions:
1. Describe the key features of these insurance coverages.
2. Are there any limitations on these coverages? Explain.
3. Indicate the persons who would be protected under each type of coverage. What kind of insurance coverages would you recommend that Sam purchase? Explain your recommendation.
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