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svlad2 [7]
2 years ago
14

Christie temporarily lends her car to her friend, Matt. Subsequently, Matt is involved in an accident while driving Christie’s c

ar. Matt and Christie have personal auto insurance policies with liability insurance limits of $200,000 and $50,000, respectively. The courts awarded a liability judgement of $80,000 against Matt. How much will each insurance policy pay? A. Matt's insurance is primary and will cover the entire $80,000. B. Christie's insurance is primary and will cover $50,000. Mark's insurance is excess and will cover the remaining $30,000. C. The policies will split the losses on a pro-rata basis, with Matt's and Christie's insurers covering $64,000 and $16,000, respectively. D. Each policy will pay $40,000.
Business
1 answer:
Llana [10]2 years ago
3 0

Answer:

The correct approach will be Option A.

Explanation:

  • Liability insurance on something like a subjective insurance plan implements the driver no matter with whom the automobile would be conducted, actually given it's an allowed to sign up the vehicle. Liability insurance safeguards insurance premiums whenever an automobile controlled by somebody else is operated either by the insured. They would also normally be compensated according to their car insurance policies in a somewhat circumstance.
  • Besides, the compensation he maintains through his automobile is liability coverage for such a covered by insurance operating everyone else's vehicle. In many of these instances, even before driving on a highway, he doesn't own the subjective coverage could very well be implemented by the driver. Throughout the scenario mentioned, Matt was indeed killed in an accident whilst also trying to drive his friend's Christie vehicle.
  • Hence, Matt's homeowner's insurance liability coverage would then kick through first. The gross amount of liabilities is $80,000, according to the verdict. The personal injury allowance of Matt becomes limited to $200,000, adequate to be insured.

The latter choice does not fit the instance in question. So, "A. Matt's premium is primary and therefore will cover the full $80,000," is the right response.

You might be interested in
4. Human judgment and experience can play a role in the advent of stock market crash because
notka56 [123]

Answer:

Investors with an experience of financial crises are better at diversifying their portfolios

Explanation:

When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.

Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.

8 0
2 years ago
GNP equals GDP7)A)plus net receipts of factor income from the rest of the world.B)minus receipts of factor income from the rest
xeze [42]

Answer:

The answer is A. Plus net receipts of factor income from the rest of the world

Explanation:

Gross National Product (GNP) measures the total output produced by a citizen of a country regardless of whether the production occurs domestically or overseas in a given period of time. while Gross Domestic Product(GDP) is the market value of all final goods and services produced within the economy in a given period of time.

For example, a citizen of United States that produced outside the country will not count for GDP but will count in the GNP.

It is only goods produced within a country that counts for GDP excluding the ones produced outside the country.

But for GNP, it includes GDP and the one outside produced by its citizens

3 0
2 years ago
The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million, operating liabilities of $2,066 million
frosja888 [35]

Answer:

Correct option is E.

Explanation:

There is not enough information to calculate the amount.

Net operating asset= Operating Assets  - Operating Liabilities

=$5489 Million - $2066 Million

=$3423 Million

Hence Average net operating assets can't be calculated by given information.

8 0
2 years ago
For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of outp
Makovka662 [10]

Answer:

The answer is: ALL THE OPTIONS ARE WRONG

Explanation:

A) In the short run, the firm will shut down if the price of its product is < $12.

B) In the long run, the firm will shut down if the price of its product is < $15.

C) The minimum value of variable cost equals the variable cost of producing 1 single unit, not the variable cost of producing 200 units.

D) If the firm's fixed costs are $500, it means that they decreased. According to the question the fixed costs were $690 (230 units x $3 per unit). So if the fixed costs decrease, then the average total cost should also decrease, not increase to $16.

4 0
2 years ago
Record the issuance of additional shares for $1,469 cash; total par value was $1 and the rest was in excess of par value.
mel-nik [20]

Answer:

cash                       1,469 debit

  common stock                        1 credit

  additional paid-in             1,468 credit

--to record issuance of shares in exchange of cash--

Explanation:

We are given the fact that total par value of the shares is $1

thus, the remained will be additional paid-in excess of Common stock.

We debit the cash received as it is an asset

Then, we credit both, common stock and additional paid-in excess of Common Stock as they are equity accounts.

7 0
2 years ago
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