Question 4 (15 marks) Kenny insured his car under Personal Auto Policy (PAP) that contains the following coverages: Liability coverages: 100/300/30 per accident Medical payments coverage: $5,000 per person Uninsured motorists coverage: $25,000 per person Collision loss: $400 straight deductible Other than collision loss: $900 straight deductible Last month, Kenny ran into a red light and hit a traffic light pole. His car was severely damaged and the cost of repairing was $9,000. He also suffered back pain and required medical payments of $2,000 due to the car accident. After investigation, Kenny was found to be legally liable for $80,000 and $120,000 in bodily injury liability for injuries suffered by two pedestrians respectively and $10,000 for the damaged traffic light pole. (a) What is a deductible? How does it affect premium? (3 marks) (b) Propose any TWO loss prevention or loss reduction techniques to reduce the frequency or severity of car accidents. (4 marks) (c) Based on the above information, calculate the total amount can be claimed from the Personal Auto Policy (PAP). List ALL relevant figures and coverages in your workings. (8 marks)