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assume you have 50/100/25 coverage in your auto insurance policy (a standard non-stacking policy). assume you were at fault in an accident, and two injured parties were awarded the following damages: person 1: $75,000 person 2: $25,000 what would your financial liability be in this case (i.e. the amount not insured)?

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abiolataiwo2015

Assume you have 50/100/25 coverage in your auto insurance policy in which  you were at fault in an accident, and two injured parties were awarded the following damages: person 1: $75,000 person 2: $25,000. Your financial liability is : $25,000.

What is financial liability?

Financial liability can be defined as the financial obligation or debt a person is expected to pay.

Hence,

Damages for the injures parties are:

Person 1: $75,000

Person 2: $25,000

Coverage:

50 / 100 / 25

Since only  person 2  will be covered  in which you can only pay  the amount of $50000 to each individual which in turns means that the financial liability will be calculated as:

Financial liability:

Financial liability = Person 1 - Insurance coverage

Financial liability  = $75000 - $50000

Financial liability = $25000

Therefore we can conclude that the financial liability is the amount of $25,000.

Learn more about financial liability here: https://brainly.com/question/14921529

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