Asked by Dallas Thompson on Jul 02, 2024
Verified
Universal Insurance Company does business in a state having no-fault insurance. An insured carries all three classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,790. The insured fell asleep at the wheel and had medical expenses for himself of $1,280 and auto repair expenses of $800. Compute the amount that Universal Insurance Company premium was over the amount the insurance company paid in benefits.
No-fault Insurance
An auto insurance policy wherein insured individuals are compensated by their own insurer, regardless of fault, in the event of an accident.
Collision Deductible
The out-of-pocket expense that a policyholder must pay before an insurance company covers the cost of damage in a collision.
Annual Premium
The amount of money paid per year to keep an insurance policy active.
- Evaluate the financial consequence of insurance claims, factoring in deductibles, premiums, and coverage maximums.
- Determine the net cost or savings of insurance to the policyholder after claims and changes in policy status.
Verified Answer
Learning Objectives
- Evaluate the financial consequence of insurance claims, factoring in deductibles, premiums, and coverage maximums.
- Determine the net cost or savings of insurance to the policyholder after claims and changes in policy status.
Related questions
Driver Buckley Lives in a State Having No-Fault Auto Insurance ...
The Owner of Property Valued at $140,000 Insured the Property ...
Thomas Insurance Company Does Business in a State Having No-Fault ...
Drivers Harris and Stein Live in a State Having No-Fault ...
Manley Insurance Company Does Business in a State Having No-Fault ...