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Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika’s car had damage of $9,600, and the car she struck had damage of $7,900. After a lengthy court suit, the couple struck were awarded personal injury judgments of $15,900 and $6,900, respectively.
What will the insurance company pay for this accident?
What is Marika’s responsibility?
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- Holly was injured while working in a factory and received 12,000 as workers compensation while she was unable to work because of the injury. Jill, who was self-employed, was also injured and unable to work. Jill collected 12,000 on an insurance policy she had purchased to replace her loss of income while she was unable to work. How much are Holly and Jill each required to include in their gross income?Marika Katz bought a new Blazer and insured it with only compulsory insurance 10/20/5. Driving up to her summer home one evening, Marika hit a parked car and injured the couple inside. Marika's car had damage of $7,500, and the car she struck had damage of $5,800. After a lengthy court suit, the couple struck were awarded personal injury judgments of $18,000 and $9,000, respectively. a. What will the insurance company pay for this accident? Amount paid b. What is Marika's responsibility? Amount paidKurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. The damage to the parked car was $10,700, and the damage to the store was $18,500. What amount will the insurance company pay for the damage? What amount will Kurt have to pay?
- Kurt has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front along the street. Damage to the parked car was 5,400 and damage to the store was 12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?Kurt has 25/50/10 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $13,000, and damage to the store was $7,500. (a) What amount will the insurance company pay for the damages? Amount paid (b) What amount will Kurt have to pay? Amount paidFiona is seriously injured in a car accident and sues the drunk driver who hit her. Frank, Fiona's loving husband who luckily was not in the car with her at the time, joins in Fiona's lawsuit with his own claim for loss of consortium. Fiona and Frank ultimately win and the jury awards them civil damages as follows Fiona $2,000,000 for medical bills, pain & suffering, etc. related to her physical injuries; $500,000 for the resulting emotional distress and associated medical bills; $450,000 for loss of earnings while recovering from her injuries; $50,000 for her "totaled" car; and $1,000,000 punitive damages. Frank $350,000 for loss of consortium. On Fiona and Frank's joint federal income tax return for the year in which they receive the above amounts, how much, if any, of those amounts must be includ-ed in their gros income? Explain in 2-3 sentences.
- George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two of their cars and did considerable damage to the garage and to the outside of their home. After receiving their reimbursements from their homeowner's and automobile insurance policies, the Cosgroves realized that they were severely underinsured. One vehicle was not insured for fire, and the insurance on their dwelling amounted to only 60 percent of its current replacement value. What do you recommend to George and Emily about managing property and liability risk regarding: 1. The relationship between severity and frequency of loss when deciding whether to buy insurance?Eric’s Ford Mustang and Susan’s Toyota Prius are insured by the same insurance agent. They have 50/100/15 vehicle insurance coverage. The very week of the windstorm, Susan had an accident. She lost control of her car, hit a parked car, and damaged a storefront. The damage to the parked car was $8,100 and the damage to the store was $17,400. What amount will the insurance company pay for Susan’s car accident?Eric's Ford Mustang and Susan's Toyota Prius are insured with the same insurance agent. They have 100/300/50 vehicle insurance coverage. The very week of the windstorm, Susan had an accident. She lost control of her car, hit a parked car, and damaged a storefront. The damage to the parked car was $8,300 and the damage to the store was $52,500. What amount will the insurance company pay for Susan's car accident? Insurance covered amount
- What Do You Recommend? George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two of their cars and did considerable damage to the garage and to the outside of their home. After receiving their reimbursements from their homeowner's and automobile insurance policies, the Cosgroves realized that they were severely underinsured. One vehicle was not insured for fire, and the insurance on their dwelling amounted to only 60 percent of its current replacement value. What do you recommend to George and Emily about managing property and liability risk regarding: 1. The risk-management steps they should take to update their insurance coverages?What Do You Recommend? George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two of their cars and did considerable damage to the garage and to the outside of their home. After receiving their reimbursements from their homeowner's and automobile insurance policies, the Cosgroves realized that they were severely underinsured. One vehicle was not insured for fire, and the insurance on their dwelling amounted to only 60 percent of its current replacement value. What do you recommend to George and Emily about managing property and liability risk regarding: 1. The risk-management steps they should take to update their insurance coverages? 2. The relationship between severity and frequency of loss when deciding whether to buy insurance?Margo ran a stop sign and crashed into another car as they were crossing the intersection. Margo had two other passengers in her car. In the car that she hit there were 3 passengers. Two sued Margo for damages and medical expenses. They were awarded $250,000 each. The third person did not sue but had $54,000 in medical expenses from the accident. Todd in Margo's car always was hurt and had $36,000 in medical expenses. There was also damage to a fence, the other car, and a lawn for a total of $24,000. Margo pays for the following car insurance: 200/500/20, PIP: 40,000. What is the total cost the insurance company will pay AND what is the total cost to Margo?