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Assignment 12

# Assignment 12 - Assignment 12.1 A 2 Renaldo Garcia paid an...

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Assignment 12.1 A 2. Renaldo Garcia paid an annual premium of \$3,200 for auto collision insurance with a \$500 deductible clause. His steering went out and he hit a tree, causing \$4,000 damage to his car. How much did he save this year by having insurance? \$3,200 premium + \$500 deductible = \$3,700 total payment \$4,000 damages - \$3,700 paid = \$300 saved 4. Drivers A and B have indentical insurance coverage. Driver A has an excellent driving record and receives a 15% discount on the standard premium. Driver B has numerous citations and pays 50% above the standard rate. The standard rate in both cases is \$1,600. How much more does driver B pay for insurance than driver A? Driver A: \$1,600 X 0.85 = \$1,360 Driver B: \$1,600 X 1.5 = \$2,400 \$2,400 - \$1,360 = \$1,040 more Alternative method: \$1,600 X 0.65 = \$1,040 B. 6. Amy Tan and John Rogers live in a state in which no-fault insurance is mandatory. They have identical full coverage of \$50,000 liability and property damage per accident, comprehensive insurance, and collision insurance with a \$350 deductible. John lost control of his car on an icy street and struck Amy’s car, a parked motorcycle, and a fence. Amy had medical expenses of \$780 John and medical expenses of \$560. Amy’s car had damage of \$1,350. John’s car had

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Assignment 12 - Assignment 12.1 A 2 Renaldo Garcia paid an...

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