Asked by Karla Macias on May 22, 2024
Verified
Manley Insurance Company does business in a state having no-fault insurance. An insured carries all classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,770. The insured struck a telephone pole causing medical expenses of $2,340 for his passenger, $620 damage to his car, and $1,840 damage to property. How much more did Manley Insurance Company pay out on behalf of the insured than it received as his annual premium?
No-fault Insurance
An insurance policy where policyholders are compensated by their own insurance company, regardless of who is at fault in an accident.
Collision Deductible
A collision deductible is the amount of money a policyholder must pay out-of-pocket for vehicle repairs before their insurance coverage pays for the remaining costs in case of a collision.
Annual Premium
The total amount paid per year for an insurance policy to remain valid and provide coverage.
- Estimate the financial implications of insurance claims, taking deductibles, premiums, and coverage limitations into account.
Verified Answer
Learning Objectives
- Estimate the financial implications of insurance claims, taking deductibles, premiums, and coverage limitations into account.
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