View Full Version : All 10 Volume 1 Page 123 Question 9 - Uninsured Motorist

03-15-2005, 03:23 PM
Based on following scenario-
Beth is named insured on policy with company A - 200k uninsured motorist coverage
Jane (Beth's Daughter) is named insured on policy with company B - 50k uninsured coverage (jane lives at home)
Martha owns a car and has 100k of uninsured coverage with comany C

Jane borrow's Martha's Car. Jane gets wrecked by an uninsured driver and is legally entitled to 250k of damages.

1. Who pays?
2. How much?
3. How much isn't covered?

All-10 says:
1. all 3 pay
2. C pays 100k.
A&B split the other 100k pro-rata to policy limits i.e. A pays 200/250 * 100 k = 80k while B pays 50/250*100k = 20k
3. 50k uncovered

I say that Beth's policy doesn't cover jane because of exclusion 2. Therefore
1. only C Pays
2. still 100k
3. 150 uncovered

Who's with me?

03-15-2005, 06:12 PM
Jane lives at home, and therefore is a household resdient on Beth's policy.

03-15-2005, 11:07 PM
See page 3.25 of "Personal Insurance" or page 5 of 12 of the PAP.