Question
Assume that a large deductible plan applies to a Workers Compensation policy for Moderna as follows: A per person deductible of $100,000 A per accident
Assume that a large deductible plan applies to a Workers Compensation policy for Moderna as follows:
- A per person deductible of $100,000
- A per accident deductible of $250,000
- An annual aggregate deductible of $750,000
Seven employees are injured in a single year and note where multiple employees were injured in a single accident. Please complete the table below showing the cost of losses for each employees loss to Moderna:
Accident # | Employee # | Amount of Loss | Amount of Deductible paid by Moderna |
1 | 1 | $180,000 |
|
1 | 2 | $100,000 |
|
2 | 3 | $75,000 |
|
2 | 4 | $150,000 |
|
3 | 5 | $125,000 |
|
4 | 6 | $100,000 |
|
5 | 7 | $80,000 |
|
Observations: What is positive or negative about this choice of a deductible plan? Do you think that the actual losses met Modernas expectations? Why yes or no?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started