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Alborosie
3 years ago
7

Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000). She also purchased

a personal umbrella policy with a $1 million limit and a $500 self-insured retention. Andrea was talking on her cell phone while driving, and her car struck and killed a pedestrian in a crosswalk. The court ordered her to pay $750,000 to the spouse of the person she killed. How will this claim be settled?
Business
1 answer:
Yuki888 [10]3 years ago
8 0

Answer:

Auto insurance policy with Bodily injury liability limits = 250/500

personal umbrella policy with a limit = $1 million

Self-insured retention = $500

Here, total claim = $750,000

Amount paid by the auto insurance policy = $250,000

Remaining = $750,000 - $250,000

                  = $500,000

Remaining claim amount of $500,000 shall be paid by the umbrella policy.

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Answer:

COGS= $31,597.5

Explanation:

Giving the following information:

Direct materials $13.00

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