Question
9) Sandra works from home as a certified public accountant. Mack Green's tax return was prepared by her but contains many errors. Mack is suing
9) Sandra works from home as a certified public accountant. Mack Green's tax return was prepared by her but contains many errors. Mack is suing Sandra for negligence. Mack wins a $10,000 judgment in the suit.
Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below:
Type | Coverage A | Coverage B | Coverage C | Coverage D | Coverage E | Coverage F |
Limit | $120,000 | $12,000 | $60,000 | $24,000 | $100,000 | $5,000 |
A $350 deductible applies to Section 1, Coverages A, B, and/or C. The replacement cost of Sandras home is $130,000, the contents are valued at $70,000, and the home is 30 percent depreciated. Compute the amount that Sandra will collect in each of the following circumstances and assume that each event occurs independently. Note: a deductible will only apply if losses are less than the coverage limit.
Personal liability limit | |
Personal liability loss | |
Is loss excluded (yes/no) | |
Total collected |
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