Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300deductible. Rusty was at fault in an accident that caused $3,400 damage to the other auto and $1,100 damage to his own. Also, thecourts awarded $14,800 and $7,200, respectively, to the two passengers in the other car for personal injuries.a. How much will the insurance company pay?Amount paidb. What is Rusty's share of the responsibility?Amount paid

Insurance is a type of legal agreement established between two parties. The insured pays the premium…

Answered: Rusty Reft, who lives in Territory 5,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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