Abel Plumbing Company's pickup truck, which had an actual cash value of $25,000 and a replacement cost
Question:
Abel Plumbing Company's pickup truck, which had an actual cash value of $25,000 and a replacement cost of $30,000, was insured under a Business Auto Coverage Form for both collision and comprehensive coverage. A $1,000 deductible applied to collision loss, and a $500 deductible applied to comprehensive loss. Indicate how much Abel's auto insurer would have paid for each of the following physical damage losses?
1)Abel's truck collided with a deer. Repair costs were $3,000.
2)Vandals smashed the windshield and slashed the tires of Abel's truck. The cost to replace the windshield was $600, and the cost to replace the tires was $400.
3)Abel's truck overturned after sliding into a ditch beside a gravel road. The truck was a total loss.
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara