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Case Study #1 Answers

Larry’s policy limits are 100/300/50. Because of this, his policy’s maximum liability limit is $300,000 per accident. This amount must cover payments to all persons involved in the accident.

Unfortunately, it is not enough, because the four liability claims total $400,000. The remaining $100,000 awarded in the settlement will not be covered by Larry’s insurance, and Larry must pay this expense out of his own pocket.

 



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