Part D of the Personal Auto Policy Pays for Temporary

question 48

Multiple Choice

Part D of the Personal Auto Policy pays for temporary transportation expenses incurred by the insured because of loss to a covered auto.The coverage provided is

• A)up to $500.
• B)unlimited.
• C)up to the actual cash value of the covered auto.
• D)up to $30 per day to a maximum of $900.

---

Definitions:

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Pretax Income

The income that a company earns before any taxes are deducted, representing the profitability of the company before government intervention.