Reference no: EM132843821

Ashley Diamond of Griffin, Georgia, drives an eight-year-old Toyota valued at $5600. She has a $75,000 personal automobile policy with $10,000 per-person medical payments coverage and both collision ($200 deductible) and comprehensive coverage. David Smith of Bristol Virginia drives a four-year-old Chevrolet Malibu valued at $9500. He has a 25/50/15 family automobile policy with $20,000 in medical payments coverage and both collision ($100 deductible) and comprehensive insurance. Late one evening, while he was driving back from Rocky Mountain National Park, David's car crossed the centerline of the road, striking Ashley's car and forcing it into a ditch. David's car also left the road and did extensive damage to the front of a roadside store.

The following table indicates the damages and their dollar amounts.

Item Amount Bodily injuries suffered by Ashley .............................. $ 6,800
Bodily injuries suffered by Fran, a passenger in Ashley car ................. 28,634
Ashley's car ......................................................................... 9,600
Bodily injuries suffered by David ............................................... 2,700
Bodily injuries suffered by Cecilia, a passenger in David's car ............. 12,845
David car ........................................................................... 9,500
Damage to the roadside store ................................................... 14,123

Problem (a) How much will Ashley's policy pay Ashley and Fran?

Problem (b) Will subrogation rights come into play? In what way?

Problem (c) How much will David's bodily injury liability protection pay?

Problem (d) To whom and how much will David's property damage liability protection pay?

Problem (e) To whom and how much will David's medical protection pay?

Problem (f) How much reimbursement will David receive for his car?

Problem (g) How much will David be required to pay out of his own pocket?