Answer:
The correct answer is $40000.
Step-by-step explanation:
As given, Jim Taylor is insured for bodily injury in the amount of 100/300.
100/300 means Jim has $100,000 per bodily injury per person & $300,000 per bodily injury per accident.
Here, Jim is at fault in an accident in which Marilee Medley is injured. Her medical expenses are $40,000.
This $40,000 is within the limits, so, the insurance company will pay $40,000.