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Can Someone Explain These Insurance Test Answers For Ca?

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Can Someone Explain These Insurance Test Answers For Ca?

Postby Hezron » Mon Oct 02, 2017 9:54 pm

The answers are below each question but I can't figure out how they got to this answer.
Any help is great!





A man had a HO4 with limits of $30,000 on Personal Property.
While traveling in Europe, he suffered the following loss: Clothes and Luggage - $10,000, Jewelry - $10,000, disregarding any deductible and assuming there is a 20% depreciation on both categories, how much would the insurance company pay?


$9,200





The Insured has a Personal Auto Policy with Bodily Injury limits of 30/60.
There were three injured parties in the other car with medical bills of (1)$13,000, (2) $35,000, (3) $10,000.
How much will the Liab Policy Pay?


$53,000
Hezron
 
Posts: 38
Joined: Sun Mar 30, 2014 3:12 am

Can Someone Explain These Insurance Test Answers For Ca?

Postby Celdtun » Wed Oct 04, 2017 12:28 am

The first two numbers refer to bodily injury liability limits. The two numbers in 30/60 would mean in an accident each person injured would receive a maximum of up to 30,000 with only 60,000 allowed per accident (ex. 2 people needing 30,000, if the need is more such as 3 people needing 30,000 then whoever files first gets first access to the 60,000 limit and you may be sued for the rest if the accident was your fault!).


so $53,000.

for q1 refer link.
Celdtun
 
Posts: 61
Joined: Sun Jan 05, 2014 2:51 pm

Can Someone Explain These Insurance Test Answers For Ca?

Postby Set » Sun Oct 08, 2017 4:28 am

The answers are below each question but I can't figure out how they got to this answer.
Any help is great!

A man had a HO4 with limits of $30,000 on Personal Property.
While traveling in Europe, he suffered the following loss: Clothes and Luggage - $10,000, Jewelry - $10,000, disregarding any deductible and assuming there is a 20% depreciation on both categories, how much would the insurance company pay?

$9,200

The Insured has a Personal Auto Policy with Bodily Injury limits of 30/60.
There were three injured parties in the other car with medical bills of (1)$13,000, (2) $35,000, (3) $10,000.
How much will the Liab Policy Pay?

$53,000
Set
 
Posts: 48
Joined: Fri Feb 07, 2014 8:02 am

Can Someone Explain These Insurance Test Answers For Ca?

Postby Christophe » Mon Oct 09, 2017 5:09 pm

1.
Jewelry has a special limitation of coverage, $1200 (for theft; we're assuming here that the loss is a theft loss).
So you depreciate the clothes to $8000, you depreciate the jewelry to $8000, compare the limitation of coverage (1200) to the ACV, and use the LOWER number - 1200.
You add the jewelry coverage amount to the clothing coverage amount, and that's how you get $9200.

2.
The MOST that BI limit pays, per person, is $30,000.
First person gets $13,000.
Second person gets $30,000 - the max payout for one person.
Third person gets $10,000.
Total - $53K.
Christophe
 
Posts: 49
Joined: Thu Jan 09, 2014 2:00 am


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