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?

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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