Question

5.) What is the amount of insurance coverage for medical payments

6.)What is the amount of coverage on loss of use

Answer 1

For #6 Answer: C $21,000

Explanation:

First, you'll need to find the value of the replacement value.

Then, you'll need to find 15% of the replacement value.

1. 175,000 x 0.8 = 140000

2. 140000 x 0.15 = 21000

For #5, the answer is $59,500

350000 x 0.85 = 297500

297500 x 0.2 = 59500