Chapter 10 Solutions

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

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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
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This note was uploaded on 08/27/2008 for the course FIN 200 taught by Professor Delcorral during the Spring '08 term at Loyola New Orleans.

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

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