John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but
her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs? A) John's policy will pay $1,500, and Kate's policy will pay nothing.
B) John's policy will pay $1,750, and Kate's policy will pay nothing.
C) Kate's policy will pay $1,750, and John's policy will pay nothing.
D) Kate's policy will pay $1,500, and John's policy will pay $250.
Answer: D. Kate's policy will pay $1,500, and John's policy will pay $250.
Explanation:
The deductible is the amount that a policy holder has to pay before the insurance company pays the remaining amount.
From the question, we are informed that John has an auto which is covered for collision losses subject to a $250 deductible while Kate's auto also has collision coverage but her deductible is $500.
If a $2,000 collision loss occurs when John borrows Kate's car because his car is in the shop for repairs, since John has a deductible of $500, Kates policy will pay ($2000 - $500) = $1500 and John's policy will pay $250.
Explanation: education is important for any person in any country. well that not so true most third world country kids do not go to school they work doing hard labor and etc.
<span>They use crossprice elasticity to determine monopoly power. In this case, this is how responsive a change in demand is of one good to the change in price of related good. The more elastic a product is, the more likely the product is to change its demand when another good changes its price.</span>
