EBK PFIN
6th Edition
ISBN: 8220103648844
Author: Billingsley
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 10, Problem 8FPE
Summary Introduction
To discuss: The steps H’s family should have taken after the accidents to assure that their auto insurance claim would be settled properly.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You are responsible for an automobile accident. Use the information below to determine:
the total amount your liability insurance will pay for the accident
the total amount your collision insurance will pay for the accident
the amount of additional damages you are esponsible for as a result of the accident You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident.
You have a 50/100/50 liability insurance policy with no deductible
You have collision insurance with a deductible of $500
The other car was valued at $25,000 and requires $10,000 in repairs
Your car was valued at $20,000 and requires $15,000 in repairs
You are responsible for an automobile accident. Use the information below to determine:
the total amount your liability insurance will pay for the accident
the total amount your collision insurance will pay for the accident
the amount of additional damages you are responsible for as a result of the accident
You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident.
You have a 50/100/50 liability insurance policy with no deductible
You have collision insurance with a deductible of $500
The other car was valued at $25,000 and requires $10,000 in repairs
Your car was valued at $20,000 and requires $15,000 in repairs
Stanley recently moved back to Ontario after living abroad for two years. He purchased a vehicle and is asking his Broker for insurance quotes. One insurance company's quote is favourable but the company prefers not to insure Stanley because of the gap in his insurance history. What should the Broker do to act within the scope of his agreement with the insurance company?
Obtain approval for the risk from the Principal Broker for approval and then submit the completed application to the insurer.• Discuss the risk with the insurer's underwriter for binding approval and then submit the completed application to the insurer.•Discuss the risk with colleagues first and then submit the completed application to the insurer.•Submit the application without the driving gap as this will get Stanley the best rate.
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- A friend has a medical condition but did not inform the insurance company when he purchased the policy. He fell ill but the insurance company refuses to cover his medical expenses. What should he do?arrow_forwardWhich of the followings is NOT correct about life insurance? a. To meet an insured person's debts and other financial commitments in the event of death. b. To pay for urgent medical expenses to save the life of an insured person if that is needed. c. To provide a financial benefit to dependents upon premature death of an insured person. d. To provide a sum of money if an insured person got a fire in his factory.arrow_forwardIdentify whether each of the following is an example of adverse selection or moral hazard.A. Joe begins smoking in bed after buying fire insurance. B. Both of Susan’s parents lost their teeth to gum disease, so Susan buys dental insurance. C. When Gertrude parks her Corvette convertible, she does not bother putting the top up, because her insurance covers theft of any items left in the car.arrow_forward
- Can you help me with some tips Question? Imagine you are a deciding Judge for the following scenario. Decide who should win the case including the reasoning for the decision? 1. Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused “by or through an earthquake.” When an earthquake struck, Chip’s house suffered no fire damage but the earthquake caused a building some blocks away to catch on fire. That fire ultimately spread to Chip’s house, burning it down. 2. Is Insurance Co. liable to Chip? 3. Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been no earthquake, Chip’s house would still be standing. The policy does not cover his loss. Argument for Chip: His house was not damaged by an earthquake, it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.arrow_forwardKurt 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_forwardName the coverage for auto insurance. Covers the costs of lawsuits if someone is injured or killed in an accident in which you are at fault. Bodily injury liability Property damage liability Comprenhensive coverage Collision Coveragearrow_forward
- Amy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Bowling.Amy Clne wrote to Statewide Claims Services, the administrator for Bowling's insurer asking for "all the insurance money that Mr.Bowling had under his insurance policy". In exchange, Klein agreed to sign a limited release that could not contain any language saying that she would have to pay Mr.Bowling's by or his insurance company any of their incurred costs". Statewide sent a check and a demand that Klein "place money in an escrow account in regards to any and all Leon's pending." Did Statewide and Klein have an enforceable agreement?arrow_forwardJames was on his way back home. Suddenly, he was involved in a car accident that involved other vehicles. When he was questioned by the police, James admitted that he was texting while driving. Prior to that incident, what action should have been taken for James? What was going to happen to him if the accident caused the others to be injured?arrow_forwardAmy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Bowling. Klein wrote to Statewide Claims Services, the administrator for Bowling’s insurer, asking for “all the insurance money that Mr. Bowling had under his insurance policy.” In exchange, Klein agreed to sign a limited release that could not contain “any language saying that [she would] have to pay Mr. Bowling or his insurance company any of their incurred costs.” Statewide sent a check and a demand that Klein “place money in an escrow account in regards to any and all liens pending.” Klein refused the demand. Did Statewide and Klein have an enforceable agreement?arrow_forward
- Amy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Bowling. Klein wrote to Statewide Claims Services, the administrator for Bowling’s insurer, asking for “all the insurance money that Mr. Bowling had under his insurance policy.” In exchange, Klein agreed to sign a limited release that could not contain “any language saying that [she would] have to pay Mr. Bowling or his insurance company any of their incurred costs.” Statewide sent a check and a demand that Klein “place money in an escrow account in regards to any and all liens pending.” Klein refused the demand. Did Statewide and Klein have an enforceable agreement? Discuss.arrow_forward. An insured dies in a fire at his/her home caused by careless smoking. What action will the insurer of the dwelling take? Deny the loss to building and contents as the insured caused the fire. Pay the loss to the building and contents to the insured's estate. Pay the building and contents loss into Court in trust. Be unable to pay the property loss as the named insured is no longer available to sign the proof of loss.arrow_forwardZachary 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.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
PFIN (with PFIN Online, 1 term (6 months) Printed...FinanceISBN:9781337117005Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed...
Finance
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning