Michael has split - limit coverage equal to 50/100/25 on his vehicle. Yesterday, Michael rear ended a new Mercedes as he was driving to work. The damage to the other car totaled $33,000, while the medical bill for the other driver was $15,000. If Michael incurred $4,500 in damage to his own car, how much will Michael's insurance company pay him (without regard to the deductible) from his split - limit policy for the accident?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Michael has split - limit coverage equal to 50/100/25 on his vehicle.
Yesterday, Michael rear ended a new Mercedes as he was driving to work.
The damage to the other car totaled $33,000, while the medical bill for the
other driver was $15,000. If Michael incurred $4,500 in damage to his
own car, how much will Michael's insurance company pay him (without
regard to the deductible) from his split - limit policy for the accident?
Transcribed Image Text:Michael has split - limit coverage equal to 50/100/25 on his vehicle. Yesterday, Michael rear ended a new Mercedes as he was driving to work. The damage to the other car totaled $33,000, while the medical bill for the other driver was $15,000. If Michael incurred $4,500 in damage to his own car, how much will Michael's insurance company pay him (without regard to the deductible) from his split - limit policy for the accident?
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