John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500
Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs?
A) John's policy will pay $1,500, and Kate's policy will pay nothing.
B) John's policy will pay $1,750, and Kate's policy will pay nothing.
C) Kate's policy will pay $1,750, and John's policy will pay nothing.
D) Kate's policy will pay $1,500, and John's policy will pay $250.
Answer: D
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A) spread. B) ask price. C) bid price. D) broker price.
In which situation would horizontal integration be an especially effective strategy?
A) When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition B) When an organization competes in a slowing industry C) When decreased economies of scale provide major competitive advantages D) When an organization has neither the capital nor human talent needed to successfully manage an expanded organization E) When competitors are succeeding due to managerial expertise or having particular resources an organization possesses