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EBK PFIN
6th Edition
ISBN: 8220103648844
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 10, Problem 6FPE
a)
Summary Introduction
To calculate: Insurance coverage for given situation
b)
Summary Introduction
To calculate: Insurance coverage for given situation.
c)
Summary Introduction
To calculate: Insurance coverage for given situation.
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Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs?
Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.
Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.
Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Zachary Lee has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damageliability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs?a. Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.b. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.c. Zachary’s 18-year-old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Rosa Valencia has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $10,000 for property damage liability that includes coverage for her vehicle, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will her insurance cover in each of the following situations? Will she have any out-of-pocket costs?
Rosa loses control when she swerves to miss a dog on the street, running into a parked car and causing $5,300 damage to the unoccupied vehicle and $3,750 damage to her own car.
Rosa pulls out in front of another car and causes a serious auto accident, badly injuring three people. The injured parties win lawsuits against her for $35,000 for one individual, and the other two passengers claimed $5,000 each ($10,000 total).
Rosa’s 16-year-old daughter borrows her car. She runs off the road when texting while driving and causes $450 damage to the car.
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- Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury liability, $50,000 for property damage liability, $3,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. Zachary loses control and skids on ice, running into a parked car and causing $2,645 damage to the unoccupied vehicle and $4,500 damage to his own car. Total paid by the insurance company $ Zachary's out-of-pocket costs $ Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $50,000 each. Total paid by the insurance company $ Zachary's out-of-pocket costs (for both victims) $ Zachary's 18-year-old son borrows his car. He backs into…arrow_forwardplease consider the following questions :Student A buy a traffic insurance and the ferasures are as following.if the driver knocks down someone else on purpose, no payment.there is a limit of max payment of $6,000.any fees happened under $800 should be covered by the investors.the investor also needs to pay 20% out of his own pocket. student A causes an accident and a loss of $12,000. How much can he claim from the insurance company?arrow_forwardChris, a good buddy or yours, is learning about personal automobile policies. He just received his policy from the insurance company. There is an item listed that he wants to take off because he doesn't think he needs it. This coverage will provide additional coverage that will pay his medical and property damage expenses above what someone else's policy pays. What policy is he referring to and does he need it? Question 6 options: Uninsured Motorist Coverage / No Uninsured Motorist Coverage / Yes Comprehensive Insurance / No Comprehensive Insurance / Yes Give typing answer with explanation and conclusionarrow_forward
- lauren borrows Mary's car. Lauren has 25/50/25 limits, and Mary has 50/100/50 limits. Lauren, while driving Mary's car, hits a pedestrian, causing $60,000 dollars in medical expenses. How much will be paid by each insurer for this loss? explain why.arrow_forward30. Gina has 250/500/50 liability insurance and $50,000 PIP insurance. Shechanges lanes too quickly, hits the metal guard rail, and the hits a tour bus.Four people are seriously injured hurt and sue her. Twenty others have minorinjuries. Gina's boyfriend, who was in the car, is hurt and requires $19,000worth of medical attention. What insurance covers this, and how much will thecompany pay? A. $19,000; BIB. $19,000; PIPC. $50,000; PIPD. $50,000; BIarrow_forwardFinn Stone has a PAP with coverage of $15,000/$30,000 for bodily injury liability, $15,000 for property damage liability, $5,000 for medical payments, and a $1,000 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round the answers to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. Finn loses control and skids on ice, running into a parked car and causing $3,635 damage to the unoccupied vehicle and $4,165 damage to his own car. Total paid by the insurance company: $ Finn's out-of-pocket costs: $ Finn runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $44,000 each. Total paid by the insurance company: $ Finn's out-of-pocket costs (for both victims): $ Finn's 18-year-old son borrows his car. He backs into a telephone pole and causes $1,300…arrow_forward
- You carry 25/50/25 coverage on your automobile. You are involved in an accident in which you are eventually held responsible for the following damages: other driver, $25,000; passenger 1, $20,000; passenger 2, $9,000; other car, $11,000. How much is left for you to pay after your insurance company has met its obligations under your policy? 0 bodily injury; 0 property damage 0 bodily injury; $4,000 property damage $4,000 bodily injury; 0 property damage $9,000 bodily injury; $4,000 property damagearrow_forwardBill Buckely has split-limit 50/100/20 automobile liability insurance on his 2012 Subaru. Driving home from work in a snowstorm, he hit a Mercedes, slid into a guardrail, and knocked down a telephone pole. Damages to the Mercedes, the guardrail, and the telephone pole were $15,557, $3,185 and $7,600 respectively. How much will Bill's insurance company pay? How much will Bill be required to pay directly? Bill's insurance company will pay? The amount Bill will be required to pay directly is?arrow_forwardToby wishes to obtain auto insurance for his two-year-old car in model class H. He wants 50/100/50 liability coverage. He lives in Territory 1 and has been assigned to driver class 3 with a rating factor of 1.5. What would be his total premium? Round your answer to the nearest cent. Bodily injury coverage is $98 annually. Property damage is $63 annually. Collision with $250 deductible is $93 annually. Collision with $500 deductible is $89 annually. Full Coverage Comprehensive is $76 annually. Comprehensive with a $100 deductible is $68 annually.arrow_forward
- Kurt has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front along the street. Damage to the parked car was 5,400 and damage to the store was 12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?arrow_forwardMike purchased a Personal Auto Policy that included Part D (coverage for damage to your auto). He lost control of his car on an icy road, slid off the road and hit a tree. Ignoring any deductible, what will the insurer pay for the damage to Mike's car? O the lesser of actual cash value or the cost to repair or replace the vehicle O the original purchase price of the vehicle O the replacement cost of the vehicle the greater of actual cash value or the cost to repair or replace the vehicle O nothingarrow_forwardIf you had 10/20/5 coverage and were in a car accident causing injury to three people with injuries totaling $13,200, $8,200, and $6,200. (Leave no cells blank - be certain to enter "0" wherever required.) a. How much would you have to pay out of pocket? Out of pocket: b. If you had 50/100/50 coverage for the same scenario, how much would you have to pay out of pocket? Out of pocket: c. What is the difference? Difference:arrow_forward
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