Question 1: Your friend has 50/100/15 automobile insurance coverage. One night they lose control of their vehicle, hit a parked car and damage a storefront along the street. Damage to the parked car was $5,500 and damage to the store was $25,500. Assume the insurance company treats this as one accident and there is no deductible. What amount will the insurance company pay for the damages? What amount will your friend have to pay?

Question 2: Your home is insured for $500,000 with a 2% deductible and your policy is a replacement value policy. The entire roof was damaged in a storm. If it costs $20,000 to replace the roof, how much will the insurance company pay?