Financial Problems

Determining the Claim Amount ( with Deductibles) For each of the following situations, what amount would the insurance company pay?

a. Wind damage of $860; the insured has a $ 500 deductible

$ 860- $ 500 = $ 360 the insured would have to pay.

b. Theft of an entertainment system worth $ 3,500; the insured has a $ 1,500 deductible.

$ 3,500 - $ 1,500 = $ 2,000 the insured would have to pay.

c. Vandalism that does $ 650 of damage to a home; the insured has a $ 1,000 deductible.

Zero; deductible exceeds loss.

Calculating Auto Liability Claims Coverage Oliver Ripley has 25/50/10 automobile insurance. If two other people are awarded $ 40,000 each for injuries in an auto accident in which the insured was judged at fault, how much of this judgment would insurance cover?

Please note the middle figure $50—Which is $50,000, $50,000 is the maximum amount the insurance company would pay for all claims in the accident.

Determining a Property Damage Liability Claim- Eric Porter has 20/40/15 auto insurance coverage. Eric was celebrating a job promotion he received and while driving home he lost control of his vehicle and he ran into a parked vehicle and damaged a store front in the process. Damage to parked vehicle was $ 7,450 and damage to the store front was $ 14,600. What amount will the insurance company pay for the damages? (Please note; the last figure $15- represents $ 15,000; $ 15,000 is the amount that the insurance company will pay. $ 15,000 represents the policy limit). What amount will Eric have to pay? $7,450 + 14,600- $ 15,000 = $7,050- the amount Eric will have to pay.

...