State-mandated minimum liability

Assignment Help Finance Basics
Reference no: EM133110725

Janet, a friend of the Ken and Beverly Austin, lives in Nebraska, where she carries the state-mandated minimum liability insurance for her auto of 10/25/20 through her personal automobile policy (PAP). She is driving through Texas and has an auto accident. Texas requires minimum liability insurance of 25/50/20. Janet injures Sarah in an amount that equals $30,000 and Sarah's auto in the amount of $15,000. How much will Sarah collect from Janet's PAP?

Answer: For the injury of Sarah Janet's PAP will pay $25,000 and for the auto's damage is $20,000

Step-by-step explanation

  1. 25/50/20 means $25,000 for the injury of one person and the remaining will be shouldered by Janet and it goes as well for the damage.

This was a question answered by another tutor. I don't quite understand the explanation, To my understanding Janet only owns a policy that's 10/25/20, so I thought that's why Janet's auto insurance would pay up to $25,000. I thought even though Texas's state minimum liability policy requires 25/50/20 that's not what she has. If anyone could clarify.

Reference no: EM133110725

Questions Cloud

Determine a firm cost of equity capital : How can you determine a firm's cost of equity capital? Explain with an example. What is the relationship between the required return on an investment and the co
Corporate entrepreneurship is oxymoron : Discuss whether the term "corporate entrepreneurship" is an oxymoron. Can corporations-especially large ones-be innovative?
What percentage of the payment represents interest : What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations
Implementation of a central counter party : The implementation of a Central Counter party (CCP) is an important measure to increase the efficiency of the capital markets. Please (i) explain the basic conc
State-mandated minimum liability : Janet, a friend of the Ken and Beverly Austin, lives in Nebraska, where she carries the state-mandated minimum liability insurance for her auto of 10/25/20 thro
Integration of biblical principles and perspectives : Propose how externalities relate to ethical leadership of firms in this industry. Integration of biblical principles and perspectives in Economic Analysis
What different financial reports are prepared by a business : Answer the following questions correctly - What different financial reports are prepared by a business? Give a concise description for each
Improvement to existing product or service : An improvement to an existing product or service you have envisioned in the role of a product specialist at a company.
Explain how a company could avoid a backlog of orders : Explain how a company could: (a) avoid a backlog of orders when sales exceed expectations; (b) avoid product defects on new products; (c) offer more credit to i

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd