Your home insurance policy has a $440 deductible. If a windstorm causes $1,700 damage to your...

Your home insurance policy has a $440 deductible. If a windstorm causes $1,700 damage to your home, what amount of the claim would the insurance company pay?

Expert Solution

Amount of Payment insurance company would pay

= Amount of Damage caused - the insurance policy amount deductable

Payment = 1,700 - 440 = $1,260

jeff jeffy answered 2 years ago

Suppose you have purchased Home Owners Insurance. This insurance policy has a $5,000 deductible, so that...

Suppose you have purchased Home Owners Insurance. This insurance policy has a $5,000 deductible, so that if you have a claim and the damage is less than $5,000 you pay for it out of pocket. However, if the damage is greater than $5,000, you pay the first $5,000 and the insurance pays the rest. In the current year, there is a probability of 0.085 that you will have a claim. If you have a claim for damages on your home,...

51. The physical damage deductible on auto collision insurance is an example of: A. risk...

51. The physical damage deductible on auto collision insurance is an example of: A. risk transfer B. loss control C. retention D. all the above E. A and C only 52. Losses sustained by a small number of insureds are shared by a large number of insureds. This is a short definition of: A. risk transfer B. pure risk C. pooling D. speculative risk

Georgio has a health insurance policy that includes a deductible of $400 and a coinsurance of 20%.

Georgio has a health insurance policy that includes a deductible of $400 and a coinsurance of 20%. If her total is $6000, how much will her insurance pay?

Suzanne has no deductible on her health insurance policy she will tend to engage in a...

Suzanne has no deductible on her health insurance policy she will tend to engage in a lifestyle that is less healthy than a person with $1,200 insurance deductible this is said to be a problem of

An insurance policy has an ordinary deductible of 100 and a maximum covered loss of 10,000....

An insurance policy has an ordinary deductible of 100 and a maximum covered loss of 10,000. You observe the following six payments: 100 200 500 600 1000 5000 In addition, there are three payments at the limit. You ﬁt a single parameter Pareto distribution with θ = 50 to the ground up distribution using maximum likelihood. Determine the estimated parameterα.

Elise's health insurance policy has a deductible of $500, a $20 copayment on doctor visits, and...

Elise's health insurance policy has a deductible of $500, a $20 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments. She visited the doctor four times last year (doctor's fee is $40 per visit) and underwent a surgery that cost $3,000. If instead she had had a policy with a $1,000 deductible, a $10 copayment on doctor visits, and no coinsurance, which of the following is TRUE regarding her expenses...

An insurance company sells homeowner's insurance to compensate homeowners in case of damage to their home....

An insurance company sells homeowner's insurance to compensate homeowners in case of damage to their home. Suppose we assume that the probability distribution of x = insurance company's payout on all policies is severely right-skewed with a mean of $4,750 and a standard deviation of $18,839.7850. 1. Consider a random sample of 9 homeowners who own this policy. Find the mean and standard deviation of the average insurance payout on these 9 policies. µ x̄ = $____ (no commas) σ...

The owner of an automobile insures it against damage by purchasing an insurance policy with a...

The owner of an automobile insures it against damage by purchasing an insurance policy with a deductible of 250. In the event that the automobile is damaged, repair costs can be modeled by a uniform random variable on the interval (0, 1500) In the above question, I am asked to find Var(Y) where Y = (X - 250). The solution actually involves finding E(Y) and E(Y^2) through intergration, then Var(Y) = E(Y^2) - E(Y)^2. I understand the solution. My question...

Sarah’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy...

Sarah’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000. The policy with...

Sarah’s comprehensive major medical health insurance plan at work has a deductible of $550. The policy...

Sarah’s comprehensive major medical health insurance plan at work has a deductible of $550. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $9,460. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,400. The policy with...

Question