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Automobile Insurance Application Question #1 Fred hasa PAP with the following coverages: Liability coverages: $100,000/$300,000/$50,000 Medical payments coverage: $5,000 per person Uninsured motorists coverage: $25,000 each person Collision loss: $250 deductible; Other-than-collision loss: $100 deductible With respect to each of the following situations, indicate whether the loss is covered and the amount payable, if any, under the policy. Assume that each situation is a separate event. Letter Loss Covered? Yes or No Yes What Policy section? Insured's Deductible Ath ount $250 Amount Payable by Insurer After Deductible $9,750 Collision Example: Fred hits a parked car;damage = $10,000 E: Fred is walking across a street & is struck by a motorist who fails to stop. He has bodily injuries in the amount of $15,000. F: Fred's car is being repaired for faulty brakes. While road testing the car, a mechanic injures another motorist & is sued for $50,000. G: Fred's car hits a cow crossing a highway. The cost of repairing the car is $2,500. H: A thief breaks a car window & steals a camera & golf clubs locked in the car. It will cost $400 to replace the damaged window. The stolen property is valued at $500Step by Step Solution
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