Chapter 10 Quiz

Bill Buckely hassplit-limit 100/200/40automobile liability insurance on his 2012 Subaru. Driving home from work in asnowstorm, he hit aMercedes, slid into aguardrail, and knocked down a telephone pole. Damages to theMercedes, theguardrail, and the telephone pole were $35,398, $8,762,and $12,458respectively. How much willBill's insurance companypay? How much will Bill be required to paydirectly? Bill's insurance company will pay $ 40000. The amount Bill will be required to pay directly is $16618 . Carmella Estevez has ahomeowner's insurance policy with $122,000of liability insurance. She is concerned about the risk of lawsuits because her property borders a neighborhood park. What can she do to increase her liabilitycoverage? How much willCarmella's yearly premiums change as a result of increasing her liabilitycoverage? Carmella should raise the amount of her liability coverage from $122,000to$300,000 or$500,000. The increase in her yearly premium for this additional coverage should be modest. She could purchase an umbrella liability policy to provide protection of$1 million or more. An umbrella policy is reasonably priced and kicks in after the liability insurance in yourhomeowner's and auto policy runs out and provides coverage for claims that are not covered under yourhomeowner's insurance. Keith and Dena Diem have personal property coverage with a $250 limit on currency, a $1,000 limit on jewelry, and a $2,500 limit on gold, silver, and pewter. They do not have a personal property floater. If $745 cash, $3,650 of jewelry, and$1,803 of pewterware were stolen from their home, what amount of loss would be covered by their homeowner's policy? If the Diems' deductible is $750, how much will they receive on their claim? The amount of loss covered by theDiems' homeowner's policy is $ 3053. If theDiems' deductible is $750,the amount they will receive on their claim is $2303 . Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $6,432.Herdwelling, which was destroyed as a result of a lightningstrike, was insured with anHO-2 policy for $382,844.Prior to theloss, her home was valued at $460,000,her detached garage and poolhouse were valued at $54,438,and her personal property had an actual cash value of $156,086.To make matters worse she sustained$10,000 in injuries while trying without success to save her three Greyhound dogs valued at$6,000 each. How much of her total losses and expenses will be reimbursed if she has a$1,000 deductible? The amount of total losses and expenses she will be reimbursed if she has a$1,000 deductible is $ 617982.40