Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Finn Stone has a PAP with coverage of $15,000/$30,000 for bodily injury liability, $15,000 for property damage liability, $2,000 for medical payments, and a $1,000

image text in transcribed

Finn Stone has a PAP with coverage of $15,000/$30,000 for bodily injury liability, $15,000 for property damage liability, $2,000 for medical payments, and a $1,000 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round the answers to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. a. Finn loses control and skids on ice, running into a parked car and causing $3,555 damage to the unoccupied vehicle and $2,085 damage to his own car. Total paid by the insurance company: Finn's out-of-pocket costs: b. Finn runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $50,000 each. Total paid by the insurance company: $ Finn's out-of-pocket costs (for both victims): c. Finn's 18-year-old son borrows his car. He backs into a telephone pole and causes $1,450 damage to the car. Total paid by the insurance company: Finn's out-of-pocket costs: Finn Stone has a PAP with coverage of $15,000/$30,000 for bodily injury liability, $15,000 for property damage liability, $2,000 for medical payments, and a $1,000 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round the answers to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. a. Finn loses control and skids on ice, running into a parked car and causing $3,555 damage to the unoccupied vehicle and $2,085 damage to his own car. Total paid by the insurance company: Finn's out-of-pocket costs: b. Finn runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $50,000 each. Total paid by the insurance company: $ Finn's out-of-pocket costs (for both victims): c. Finn's 18-year-old son borrows his car. He backs into a telephone pole and causes $1,450 damage to the car. Total paid by the insurance company: Finn's out-of-pocket costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these Finance questions