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Chapter 10 Solutions

# Chapter 10 Solutions - Chapter 10 Solutions 1 a The amounts...

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Chapter 10 Solutions 1. a. The amounts covered by the insurance and those paid by the Connors for each type of loss is as follows: The dwellin g {(\$24,000 – \$250) x [\$68,400/(\$95,000 x .80)]} = \$21,375 was paid by the insurance company, and \$2,625 was paid by the Connors. The garag e was paid for by the insurance company (10 percent of the coverage on the dwelling itself; the limit on detached structures) = \$6,840 , and the Connors paid the remaining \$1,560 totaling \$8,400 of damage. The cas h \$200 was paid by the insurance company, the limit for HO policies, and the Connors paid the other \$150 . The stamp collectio n \$1,000 was paid by the insurance company, the limit for HO policies, and the Connors paid the remaining \$2,215 . The extra living expense s (20% of insurance) therefore \$1,350 , the full amount, was paid by the insurance company. b. The cost to replace the damaged personal property for the Connors totaled \$18,500 , which does not exceed the limit of 50 percent of the coverage on the dwelling. However, the actual amount of reimbursement depends on whether the policy paid on the basis of

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