25. Sid King has automobile liability insurance in the amount of 50/100/50. He also carries $250 deductible collision and full comprehensive coverage. Recently, he was at fault in an accident in which his car went out of control in the rain and struck four pedestrians. In an out-of-court settlement, they were awarded the following: Goya, $45,000; Truman, $68,000; Copeland, $16,000; and Kelly, $11,000. Damage to Sid's car amounted to $3,900. How much will the insurance company pay and to whom? $103,650 What part of the settlement will be Sid's responsibility? $40,250 How crashes affect auto premiums Average annual auto insurance premiums rise with each at-fault traffic accident: No accidents $1,387 One $1,689 Two $2,041 Three $2,348 Four $2,806

25. Sid King has automobile liability insurance in the amount of 50/100/50. He also carries $250 deductible collision and full comprehensive coverage. Recently, he was at fault in an accident in which his car went out of control in the rain and struck four pedestrians. In an out-of-court settlement, they were awarded the following: Goya, $45,000; Truman, $68,000; Copeland, $16,000; and Kelly, $11,000. Damage to Sid's car amounted to $3,900. How much will the insurance company pay and to whom? $103,650 What part of the settlement will be Sid's responsibility? $40,250 How crashes affect auto premiums Average annual auto insurance premiums rise with each at-fault traffic accident: No accidents $1,387 One $1,689 Two $2,041 Three $2,348 Four $2,806

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 67P

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