Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. zachary lee has a personal automobile policy (pap)

Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury...

90.2K

Verified Solution

Question

Accounting

Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury liability, $50,000 for property damage liability, $3,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required.

A. Zachary loses control and skids on ice, running into a parked car and causing $4,375 damage to the unoccupied vehicle and $3,270 damage to his own car.

Total paid by the insurance company $
Zachary's out-of-pocket costs $

B. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $33,000 each.

Total paid by the insurance company $
Zachary's out-of-pocket costs (for both victims) $

C. Zachary's 18-year-old son borrows his car. He backs into a telephone pole and causes $400 damage to the car.

Total paid by the insurance company $
Zachary's out-of-pocket costs $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students