Question 38 0 out of 1 points you are asked to

 Question 38
0 out of 1 points
You are asked to evaluate the insurance policies of a new client, named John. The
homeowner’s policy is for $250,000 with a $100 deductible. It was purchased approximately 8
years ago. John recently updated his personal auto policy (PAP) that covers his 3 year old car
with the following split limits: $150,000 / $500,000 / $50,000. The PAP has both collision and
comprehensive coverage with a deductible of $250. He also has an umbrella policy in the
amount of $1,000,000. Use this information to answer the following questions.
If the replacement cost of the home is $400,000 and there is $50,000 of damage due to a
grease fire, what is John's insurance reimbursement?
Answer
s:
A.
$38,963
B.
$39,063
C.
$49,900
D.
$50,000
Response
Feedback:
[$250,000 policy / (80% x $400,000 replacement cost)] x $50,000 loss -
$100 deductible = $38,963
 Question 39
0 out of 1 points
You are asked to evaluate the insurance policies of a new client, named John. The
homeowner’s policy is for $250,000 with a $100 deductible. It was purchased approximately 8
years ago. John recently updated his personal auto policy (PAP) that covers his 3 year old car
with the following split limits: $150,000 / $500,000 / $50,000. The PAP has both collision and
comprehensive coverage with a deductible of $250. He also has an umbrella policy in the
amount of $1,000,000. Use this information to answer the following questions.
Assume John causes an accident which totals his $40,000 car when he slides off the road
and hits a tree. What will John receive from his personal auto policy (PAP)?
Answer
 Question 40
0 out of 1 points

You are asked to evaluate the insurance policies of a new client, named John. The
homeowner’s policy is for $250,000 with a $100 deductible. It was purchased approximately 8
years ago. John recently updated his personal auto policy (PAP) that covers his 3 year old car
with the following split limits: $150,000 / $500,000 / $50,000. The PAP has both collision and
comprehensive coverage with a deductible of $250. He also has an umbrella policy in the
amount of $1,000,000. Use this information to answer the following questions.
When John hits the tree he injures his friend who sues for $1,240,000. What is the proper
order of how this settlement will be paid (ignore any deductibles)?
Answer