A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • one year ago

Ricardo paid an annual premium of $1,200 in total liability coverage for his car, including up to $200,000 in bodily injury coverage and $100,000 in property damage coverage. Ten years into his policy, Ricardo caused an accident that resulted in the other driver claiming $40,000 in medical costs and $20,000 in car damage. Did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

  • This Question is Closed
  1. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Answer choices: Yes, the cost of the annual premium for 10 years was the same as the accident claims Yes, the cost of the annual premium for 10 years was more than the accident claims No, the cost of the annual premium for 10 years was less than the accident claims No, the cost of the annual premium for 10 years was more than the accident claims

  2. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The annual premium ($1,200) times the length of time (10 years) equals $12,000 or \[1,200\times10 =12,000\] So the correct answer is: No, the cost of the annual premium for 10 years was less than the accident claims.

  3. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.