Melvin Has an Auto Insurance Policy That Includes Both Collision

question 152

Multiple Choice

Melvin has an auto insurance policy that includes both collision and comprehensive coverage.He has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage.His car has a book value of $7,500 when he is in a one-car accident with a tree.The car suffers damages of $5,000.How much will Melvin's insurance company pay for this repair work?

• A)$4,750
• B)$4,900
• C)$7,400
• D)$7,250

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Definitions:

Continuous Attention

Ongoing focus and vigilance towards a task, project, or objective to ensure its successful completion.

Value Chain Analysis

A strategic analysis tool used to identify the primary and support activities of a business that create value for the customer, to enhance competitive advantage.

Core Processes

are the essential and fundamental activities carried out by an organization that directly contribute to its main objectives and mission.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.