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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 71
Explain in your own words the difference between liability (bodily injury) and property damage.
Define liability insurance. Liability or bodily injury insurance protects the insured in case he or she injures someone with a car. Many states have minimum amounts of liability insurance coverage set by law. The amount of liability insurance is expressed as a fraction, such as 15/30. The fraction 15/30 means that the insurance company will pay up to $15,000 for injury to one person, and a total of $30,000 for injury to two or more persons in the same accident.
However, many experts recommend liability limits of at least 100/300. This is because a single driving mistake can be very costly, as shown in the following newspaper clipping.
One Accident affects Life
Thomas Garcia has driven for 10 years and has never had an accident or a speeding ticket. However, his life changed instantly when he accidently ran through a stop sign and hit a car driven by a nurse. She is now disabled and can no longer work. Garcia's policy limits of 25/50 are not nearly enough to pay her bills, and her lawyer is taking Garcia to court. Garcia wishes that he had carried higher liability limits.
The following table shows typical premium rates for various amounts of liability coverage. Included in the cost of the liability insurance is medical insurance for the driver and passengers in case of injury. For example, the table column 15/30 shows that the insured can also receive reimbursement for up to $1000 of his or her own medical expenses in an accident. Insurance companies divide the nation into territories based on past claims in all areas. Four territories are shown here. All tables in this section show annual premiums.
Define property damage insurance. Liability coverage pays if you injure someone. Property damage coverage pays if you damage someone else's property such as an automobile or a building. The following table shows the annual cost for various policy limits on property damage. You are responsible for damages above the policy limit.
Define liability insurance. Liability or bodily injury insurance protects the insured in case he or she injures someone with a car. Many states have minimum amounts of liability insurance coverage set by law. The amount of liability insurance is expressed as a fraction, such as 15/30. The fraction 15/30 means that the insurance company will pay up to $15,000 for injury to one person, and a total of $30,000 for injury to two or more persons in the same accident.
However, many experts recommend liability limits of at least 100/300. This is because a single driving mistake can be very costly, as shown in the following newspaper clipping.
One Accident affects Life
Thomas Garcia has driven for 10 years and has never had an accident or a speeding ticket. However, his life changed instantly when he accidently ran through a stop sign and hit a car driven by a nurse. She is now disabled and can no longer work. Garcia's policy limits of 25/50 are not nearly enough to pay her bills, and her lawyer is taking Garcia to court. Garcia wishes that he had carried higher liability limits.
The following table shows typical premium rates for various amounts of liability coverage. Included in the cost of the liability insurance is medical insurance for the driver and passengers in case of injury. For example, the table column 15/30 shows that the insured can also receive reimbursement for up to $1000 of his or her own medical expenses in an accident. Insurance companies divide the nation into territories based on past claims in all areas. Four territories are shown here. All tables in this section show annual premiums.
Define property damage insurance. Liability coverage pays if you injure someone. Property damage coverage pays if you damage someone else's property such as an automobile or a building. The following table shows the annual cost for various policy limits on property damage. You are responsible for damages above the policy limit.Explanation
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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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