Question

Peed VVheels has insurance on its race car track that covers up to $150,000 in damage with a $7,500 deductible. This means that Speed Wheels must pay the first $7,500 before the msurance coverage begins. The race track is vandalized and incurs $14,200 in damages, How much will the insurance pay toward this damage?

Answer 1

Answer:

Speed Wheels and the Insurance Company

The insurance company will pay Speed Wheels $14,200.

Explanation:

a) Data:

Insurance cover = $150,000

Insurance premium = $7,500

Insurance Claim = $14,200

b) The insurance company is expected to restore the insured, Speed Wheels, to its former position before the damage. It can do this by issuing a check to the value of the claim after some verifications.  The insurance company will most likely not reject the claim as the amount of damage suffered is within the insurance coverage.