Question

A truck belonging to office furnishing failed to yield the right of way at an on ramp and crashed into an automobile. Damages included 1,800.00 to the truck and 4,000.00 to the car. In addition, the drivers of the crash was granted 56,000.00 of internal injuries from the collision. Office finishing carries 50/100/10 liability, comprehensive and 250.00- deductible collision insurance. How much of the total expenses is office furnishing responsible for?

Answer 1

The total damages is calculated by adding the damages and the cash grants:
1800 + 4000 + 56000 = 61800

The insurance company will cover according to the policy 50/100/10
1800(0.5) + 4000(1.0) + 56000(0.01) + 250 = 5710

The office furnishing will be responsible for the difference:
61800 - 5710 =$56,090

Answer 2

Answer:

$250

Explanation:

A 50/100/10 insurance policy means that the policy will cover a maximum of $50,000 for individual injuries, $100,000 as maximum liability for total personal injuries and $10,000 for property damage.

Property damages = $1,800 + $4,000 = $5,800 (fully covered by the policy, max. $10,000).

The drivers, meaning more than 1, therefore we assume that $56,000 was used to cover total personal injuries (fully covered by the policy, max. $100,000).

Therefore, office furnishing must only pay the $250 deductible, since the policy covers the rest of the expenses.