anonymous
  • anonymous
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?
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
jamiebookeater
  • jamiebookeater
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
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
anonymous
  • anonymous
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.

Looking for something else?

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