You Are Not at Fault in a Car Accident That

question 87

Multiple Choice

You are not at fault in a car accident that causes you total damages for injuries and lost employment in the amount of $550 000.If you have under insured motorist coverage and the other driver who is at fault has coverage for $500 000,what will you be able to claim?

• A)The other driver's insurance company will pay $550 000.
• B)Your auto insurance company will cover $550 000.
• C)The other driver's insurance company will pay $500 000 and your health coverage will pay $50000
• D)The other driver's insurance company will pay $500 000 and your auto insurance will pay $50000

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Definitions:

Fair-Value Hedge

A hedge that is used to mitigate the risk of changes in the fair value of an asset, liability, or an unrecognized firm commitment.

Cost of the Hedge

The expenditure associated with implementing and maintaining a hedge against financial risk.

Fair-Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability or an identified portion of such an asset or liability that is attributable to a particular risk.

Exchange Gain

A profit arising from changes in foreign exchange rates that benefit the value of a company's foreign currency denominated assets or liabilities.