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The Insured has $1 million liability limit on his automobile policy. He excluded his son from the policy as the son is away at school and he d not want to pay an occasional driver premium. While at home, the son cakes the car and has an at fault accident causing $1 million in damage and a resulting lawsuit. Is the insurance company liable to pay the damages and how much will they pay?

The Insured has $1 million liability limit on his automobile policy. He excluded his son from the policy as the son is away at school and he d not want to pay an occasional driver premium. While at home, the son cakes the car and has an at fault accident causing $1 million in damage and a resulting lawsuit. Is the insurance company liable to pay the damages and how much will they pay?

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The Insured has $1 million liability limit on his automobile policy. He excluded his son from the policy as the son is away at school and he did not want to pay an occasional driver premium. While at home, the son takes the car and has an at fault accident causing $1 million in damages and a resulting lawsuit. Is the insurance company liable to pay the damages and how much will they pay? Yes, the policy will pay up to the limit of liability based on the liability limits rule. No, they will not pay the claim, as the driver of the car is excluded from the policy. Yes, they will pay up to the absolute liability limit which is $200,000. No, they are not liable for the $1 million lawsuit, but will pay for the physical damages.
Transcribed Image Text:The Insured has $1 million liability limit on his automobile policy. He excluded his son from the policy as the son is away at school and he did not want to pay an occasional driver premium. While at home, the son takes the car and has an at fault accident causing $1 million in damages and a resulting lawsuit. Is the insurance company liable to pay the damages and how much will they pay? Yes, the policy will pay up to the limit of liability based on the liability limits rule. No, they will not pay the claim, as the driver of the car is excluded from the policy. Yes, they will pay up to the absolute liability limit which is $200,000. No, they are not liable for the $1 million lawsuit, but will pay for the physical damages.
Certain Accident Benefits described in O.A.P.1 Owner's Policy are not payable in all motor vehicle accidents. Which one (1) of the following would be fully entitled to the benefits? A driver operating an automobile not insured under a motor vehicle liability policy. A driver who is not the registered owner of the vehicle. A driver who does not have a valid Driver's Licence. A driver operating a vehicle without the owner's consent.
Transcribed Image Text:Certain Accident Benefits described in O.A.P.1 Owner's Policy are not payable in all motor vehicle accidents. Which one (1) of the following would be fully entitled to the benefits? A driver operating an automobile not insured under a motor vehicle liability policy. A driver who is not the registered owner of the vehicle. A driver who does not have a valid Driver's Licence. A driver operating a vehicle without the owner's consent.
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