Walter Burton was a self-employed window washer earning approximately $700 per week. One day, while cleaning windows on the eighth floor of the Commercial Bank Building, he tripped and fell from the scaffolding to the pavement below. He was immediately rushed to the local hospital for surgery. He remained there for 54 days of treatment, after which he was allowed to go home for further recuperation. During his hospital stay, he incurred the following expenses: surgeon, $3,000; physician, $1,500; hospital bill for room and board, $260 per day; nursing services, $1,300; anesthetics, $600; wheelchair rental, $100; ambulance, $150; and drugs, $350. Walter has a major medical policy that has a $3,400 deductible clause, an 80 percent co-insurance clause, internal limits of $160 per day on hospital room and board, and $1,900 as a maximum surgical fee. The policy provides no disability income benefits.
1. How much should Walter recover from the insurance company?
2. How much must he pay out of his own pocket?