This is not legal advice.
In your hypothetical, the insurance company would pay out up to the policy limits.
However, your scenario about paying medicals up to 200K, then a death occuring is not possible. Insurance companies will not pay until a final claim is made so monies would not be paid until after the death of the individual.
Anything in excess of the policy limits may come back against you. In your hypo, insurance would pay up to 200k for the wrongful...