Asked by Ashley Egeland on May 25, 2024
Verified
Thomas Insurance Company does business in a state having no-fault insurance. Driver Jones is insured by Thomas Insurance Company and carries only no-fault insurance. Jones skids on a curve and hits a fruit stand. Medical expenses for Jones are $720 and are $630 for the only passenger. Repairs to the car cost $1,300. Repairs for the fruit stand cost $420. Compute the amount Jones and Thomas Insurance Company each had to pay toward repairs and medical expenses.
No-fault Insurance
An auto insurance policy where each party's insurance pays for their losses regardless of who was at fault in the accident.
Medical Expenses
Costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease and for treatments affecting any part or function of the body.
- Gain an understanding of the fundamentals of no-fault auto insurance and how it influences claims and compensation.
- Calculate the economic ramifications of insurance claims, including considerations of deductibles, premiums, and coverage extents.
Verified Answer
SK
Learning Objectives
- Gain an understanding of the fundamentals of no-fault auto insurance and how it influences claims and compensation.
- Calculate the economic ramifications of insurance claims, including considerations of deductibles, premiums, and coverage extents.
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