PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
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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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.
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.
Chapter 10 Solutions
PFIN 7:STUDENT EDITION-TEXT
Ch. 10 - Prob. 1LOCh. 10 - Identify the types of coverage provided by...Ch. 10 - Prob. 3LOCh. 10 - Prob. 4LOCh. 10 - Prob. 5LOCh. 10 - Choose a property and liability insurance agent...Ch. 10 - Prob. 1FPECh. 10 - Last year, Thea and Rory Brown bought a home with...Ch. 10 - Prob. 3FPECh. 10 - Prob. 4FPE
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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
- 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_forwardRaymond 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? $ 27arrow_forwardKurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. The damage to the parked car was $10,700, and the damage to the store was $18,500. What amount will the insurance company pay for the damage? What amount will Kurt have to pay?arrow_forward
- Martin hits into a tree when driving his own car. He is injured with a medical expense of $1,000; Martin's friend Jordan who sits in Martin's car is also injured with a medical expense of $2,500. Both Martin and Jordan have PAP policies with medical payment coverage limit of $5,000/person. The amount Martin's insurance needs to pay for this accident is O a. $1,000, O b. $2,500, O c. $3,500 O d. Nothing since it is Martin's faultarrow_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_forwardKurt 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 paidarrow_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_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_forwardRobert had an accident and injured a driver and her car. He has auto insurance with the minimum coverage for Illinois. He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage. The driver's injuries cost $5,000 and damages to her car cost $3,000. Robert's car had damages costing $4,000. How much will the Insurance company pay for these claims? $12,000 $11,250 $11,750 $3,750arrow_forward
- Kurt has 25/50/20 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 $14,300, and damage to the store was $16,500 (a) What amount will the insurance company pay for the damages? Amount paid $ Amount paid (b) What amount will Kurt have to pay?. 25,000 $ 5,800 4arrow_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_forwardMichael has split - limit coverage equal to 50/100/25 on his vehicle. Yesterday, Michael rear ended a new Mercedes as he was driving to work. The damage to the other car totaled $33,000, while the medical bill for the other driver was $15,000. If Michael incurred $4,500 in damage to his own car, how much will Michael's insurance company pay him (without regard to the deductible) from his split - limit policy for the accident?arrow_forward
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