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For each scenario below, first calculate the dollar amount that Jane's personal automobile policy insurer will pay for the accident. Then, provide a brief explanation
For each scenario below, first calculate the dollar amount that Jane's personal automobile policy insurer will pay for the accident. Then, provide a brief explanation for how you arrived at this amount. Background: Jane owns the typical personal automobile policy, as discussed in Chapter 12 of the textbook (Appendix B). Assume that each accident, as described in the following scenarios, occurred separately. The actual cash value of Jane's car is $17,400. The policy has the following limits: A = $100,000 B = $3,000 C = $100,000 D = $250 deductible - collision; $250 deductible -other-than-collision . Scenario #1: While using her car as a delivery vehicle for a local orchard, Jane was struck by an uninsured motorist. She had $10,000 in medical expenses and lost wages. Her car was totaled (the replacement value is $14,500). Scenario #2: Jane ran a stop sign and collided with a parked car, causing $3,250 of damage to each vehicle. Scenario #3: Jane hit a deer on a country road. Her car was a total loss. Scenario #4: Jane borrowed her neighbor's car for a week, while the neighbor was on vacation. While driving the neighbor's car, Jane ran into a pole and caused $4,000 of damage to the neighbor's car. For each scenario below, first calculate the dollar amount that Jane's personal automobile policy insurer will pay for the accident. Then, provide a brief explanation for how you arrived at this amount. Background: Jane owns the typical personal automobile policy, as discussed in Chapter 12 of the textbook (Appendix B). Assume that each accident, as described in the following scenarios, occurred separately. The actual cash value of Jane's car is $17,400. The policy has the following limits: A = $100,000 B = $3,000 C = $100,000 D = $250 deductible - collision; $250 deductible -other-than-collision . Scenario #1: While using her car as a delivery vehicle for a local orchard, Jane was struck by an uninsured motorist. She had $10,000 in medical expenses and lost wages. Her car was totaled (the replacement value is $14,500). Scenario #2: Jane ran a stop sign and collided with a parked car, causing $3,250 of damage to each vehicle. Scenario #3: Jane hit a deer on a country road. Her car was a total loss. Scenario #4: Jane borrowed her neighbor's car for a week, while the neighbor was on vacation. While driving the neighbor's car, Jane ran into a pole and caused $4,000 of damage to the neighbor's car
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