You Own an Auto Liability Policy with 150/250/50 Limits

question 15

Multiple Choice

You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:

• A) $0
• B) $10,000
• C) $20,000
• D) $30,000
• E) None of the above are correct answers

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Definitions:

Squared Values

Numbers that have been multiplied by themselves.

Cost-To-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives in terms of costs and benefits.

Numeric Ratio

A comparative figure showing the relative sizes of two quantities expressed as a quotient.

Written Analysis

The process of critically evaluating or discussing a subject in written form to understand its components or relationships.