CONNECT CODE FOR FOCUS ON PER FIN
19th Edition
ISBN: 9781260773354
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 8, Problem 7P
Summary Introduction
To determine: The amount payable by insurance company Person K.
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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?
Raymond has $12,000 worth of property damage insurance and a $1,200 deductible
collision insurance policy. He had a tire blowout while driving and crashed into a
$1,500 brick wall. The crash caused $3,800 in damages to his car.
a. How much will the insurance company pay for the brick wall?
b. How much will the insurance company pay for the damage to the car?
$
27
Kurt has 25/50/10 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront
along the street. Damage to the parked car was $13,000, and damage to the store was $7,500.
(a) What amount will the insurance company pay for the damages?
Amount paid
(b) What amount will Kurt have to pay?
Amount paid
Chapter 8 Solutions
CONNECT CODE FOR FOCUS ON PER FIN
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- 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.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_forwardJosh Edwards was judged at fault in an automobile accident. Three others were awarded damages of $200,000, $100,000, and $100,000. Josh has 100/400 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?arrow_forward
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- Vanessa was driving Cara's vehicle. Vanessa did not see a stop sign and broadsided a vehicle in the middle of the intersection. The injured driver was awarded $150,000 in damages. Cara has limits of $100,000 on her vehicle and Vanessa has limits of $300,000 on hers. How much will Cara's insurance company pay for the injured driver?arrow_forwardWhile driving Mohamed's car Sarah accidentally crashed and hit a house, the loss costs a total of 2.505. If in this case Mohamed's insurance policy acted as the primary with a limit of 981, while Sarah's policy acts as the excess and has a limit of 3,943. In this case how much will Sarah's insurance policy pay?arrow_forwardlauren 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_forward
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