Question

In: Finance

Rebecca Fowler was judged at fault in an automobile accident. Four others were awarded damages of...

Rebecca Fowler was judged at fault in an automobile accident. Four others were awarded damages of $40,000, $40,000, $50,000 and $50,000. Rebecca has 50/150 bodily injury liability coverage. What amount, if any, would not be covered by her insurance?

Select one:

a. $180,000

b. $150,000

c. $50,000

d. $30,000

e. None. The total amount would be covered by insuranc

Solutions

Expert Solution

D.30,000

50/150 means 50,000 is the maximum amount per person per bodily injury will be covered by insurance.

None of the person is awarded an amount greater than $50,000, so every individual payment is within limit.

Maximum total amount per accident to be covered is 150,000.

In the given case total damages amounted to 180,000.

So the amount not covered by insurance will be 30,000.


Related Solutions

Rebecca Fowler was judged at fault in an automobile accident. Four others were awarded damages of...
Rebecca Fowler was judged at fault in an automobile accident. Four others were awarded damages of $40,000, $40,000, $50,000 and $50,000. Rebecca has 50/150 bodily injury liability coverage. What amount, if any, would not be covered by her insurance? Select one: a. $180,000 b. $150,000 c. $50,000 d. $30,000 e. None. The total amount would be covered by insurance .
Josh Edwards was judged at fault in an automobile accident. Three others were awarded damages of...
Josh 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? Select one: a. $200,000 b. $100,000 c. $50,000 d. $25,000 e. None. The total amount would be covered by insurance .
Tiffany is in an automobile accident, and both parties are partially at fault. Tiffany is judged...
Tiffany is in an automobile accident, and both parties are partially at fault. Tiffany is judged to be 40 percent at fault and the other driver is judged to be 60 percent at fault. Tiffany’s actual damages are $60,000. Under a pure comparative negligence law, how much, if anything, does Tiffany receive for her injury? Explain why.
A survey of 200 drivers who were at fault in an accident found that 62% were...
A survey of 200 drivers who were at fault in an accident found that 62% were dropped by their insurance carrier. Conduct a hypothesis test at a 0.10 level of significance to determine if the percentage of drivers dropped by the insurance carrier is different than 60%. State the null and alternate hypotheses. Please show work
A survey of 200 drivers who were at fault in an accident found that 62% were...
A survey of 200 drivers who were at fault in an accident found that 62% were dropped by their insurance carrier. Conduct a hypothesis test at a 0.10 level of significance to determine if the percentage of drivers dropped by the insurance carrier is different than 60%. State the null and alternate hypotheses. Use whichever applicable approach to hypothesis testing that you prefer, specify the numerical comparisons to be made, and state your conclusion.
Rusty has an accident where he is at fault. His automobile insurance coverage is 60/120/15.
Rusty has an accident where he is at fault. His automobile insurance coverage is 60/120/15. Two people were hurt and the court awarded them $60,000 each for injuries in the accident.a) How much will the insurance company pay of those "awards?"b) How much will Rusty have to pay himself?
Identify four benefits required by no-fault laws. Identify two types of programs that provide automobile insurance...
Identify four benefits required by no-fault laws. Identify two types of programs that provide automobile insurance for high-risk drivers. How do the activities of insurers of high-risk drivers in the voluntary market differ from the activities of insurers in the residual market? What role does a state joint underwriting association (JUA) serve with regard to rates, policy forms and claim settlement for high-risk drivers? Explain the relationship between competition and regulatory monitoring of insurance rates and how that monitoring is...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT