Mr. Pfister carried 15/30/5 limits on an auto, when he negligently ran into a parked car containing three occupants resulting n the following claims: Tom - B.I. - $18,000, P.D. - $8,000; Dick - B.I. - $8,000; Harry - B.I. - $4,000. In addition to these settlement awards, there was $18,000 in legal fees. In response to this accident, Pfisters P.A.P will pay: A. $32,000; B. $38,000; C. $50,000; D. $68,000
C. This is an example of a split limit claim. Payment is as follows: Tom -- $15,000; PD--$5,000; Dick $8000; Harry $4000 which totals $32,000. The defense costs ($18000) are covered and paid by the insurer, which brings the total to $50,000.