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Old 12-28-2018, 04:10 PM
Jim Bedford Jim Bedford is offline
Join Date: Nov 2013
Posts: 131

Originally Posted by Bash View Post
Hi Jim, I was looking at your solution to Section A question 9.
Mr. Trout purchases and automobile policy from LAA Ins. Co with 250,000 third party liability coverage, a 1,500 OTC deductible and 1,000 collision deductible.

Mr. Trout is at fault in an accident and is liable for injuries caused to the other driver of 275,000.

In addition, it costs 15,000 to repair Mickey's car, and $18,000 of legal fees are incurred. Calculate the total amount LAA Ins. Co. pays out for this occurrence.

It is my understanding that collision payment is to the insured and not a 3rd party, and therefore I was not expecting the payment of 14,000 by LAA, am I right? If Mickey is the same person as Mr. Trout, then that would be okay, I believe, but the question does not state so. Please clarify, thanks.
Sorry, good catch--"Mickey's" should be replaced by "Mr. Trout's" in this problem (Mickey was the name used in the prior problem and carried forward here by accident).

Jim Bedford, FCAS, MAAA
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