Question

Kelly has a PAP with split limits of $25/$50/$25. She failed to stop at a red light and hit a van. Damage to the van itself is $15,000. Two passengers in the van are injured. Passenger A has bodily injuries of $15,000 and Passenger B has bodily injuries of $30,000. Kelly is injured and has medical bills of $10,000 and her car has damages of $10,000. How much will Kelly’s policy pay under Part A Liability Coverage? Explain your answer.

Answer 1

Though the Personal Auto Policy with split limits of $25/$50/$25 would mean that under Part A liability coverage, $25,000 would be paid by insurer for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for damage to property per accident, but here, the insurer will pay no claim because the exclusions to Part A Liability Coverage include case where” insured intentionally causes bodily injury or property damage”.

Here, Kelly failed to stop at a red light and hit the van. Not stopping at the red light would account to intentionally causing bodily injury or property damage. Therefore, the policy would pay no claim.