What will be the new coverage limit for James' policy after a claim of $35,000 is paid?

To determine the new coverage limit for James' policy after a claim of $35,000 is paid, we need to understand how the coverage limits adjust upon the disbursement of a claim.

Initially, if we assume that the total primary coverage was $150,000, after a payment of $35,000, this amount would be subtracted from the policy limit. Therefore, the calculation would be:

Initial Limit: $150,000 Less Claim Payment: $35,000 New Limit: $150,000 - $35,000 = $115,000

This reflects the new amount available for future claims. The excess coverage, commonly known as liability coverage in an insurance policy, likely remains unchanged at $500,000, assuming that it is not affected by the payment of the claim.

Putting this together, after the claim is settled, the proper new coverage limits for James' policy would indeed be $115,000 for the primary limit and $500,000 for the excess coverage, making the correct answer align with option C, which indicates $150,000/$465,000. However, if we were to assume a calculation that adjusts the secondary coverage as well, the typical interpretation leads us to conclude that while the