Sarah purchased a Personal Auto Policy with liability limits of 50/100

Sarah purchased a Personal Auto Policy with liability limits of 50/100/25. Sarah ran a stop sign and hit a van. The van sustained $15,000 in damages.

The following bodily injuries were suffered by passengers in the van: Passenger #1, $15,000; Passenger #2, $60,000; and Passenger #3, $10,000. Sarah sustained $5,000 in medical expenses, and Sarah’s car sustained $10,000 in damages. How much will Sarah’s insurer pay under Part A: Liability Coverage?
A) $90,000
B) $100,000
C) $115,000
D) $125,000

ANSWER

Answer: A