Under an Insurance Policy with a Coverage of $50,000/$120,000, with Damages

question 12

Multiple Choice

Under an insurance policy with a coverage of $50,000/$120,000, with damages totaling $60,000 in a lawsuit for plaintiff 1 and $10,000 for plaintiff 2, the insured is responsible for ___________.

• A) $60,000
• B) $10,000
• C) $50,000
• D) $40,000

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Definitions:

Disproportionately Large Weight

An undue or excessively large significance or importance given to a component or factor in a situation or calculation.

Catastrophic Medical Emergency

A sudden, unexpected medical situation requiring immediate and expensive care, potentially causing significant financial hardship.

Underestimate

To assess something or someone as less in quantity, value, or importance than is actually the case.

Over-precision

The tendency to be too confident in one's own judgments, estimates, or predictions, often leading to errors or miscalculations.