- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
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.