Universal Insurance Company Does Business in a State Having No-Fault

question 57

Short Answer

Universal Insurance Company does business in a state having no-fault insurance. An insured carries all three classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,790. The insured fell asleep at the wheel and had medical expenses for himself of $1,280 and auto repair expenses of $800. Compute the amount that Universal Insurance Company premium was over the amount the insurance company paid in benefits.

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Definitions:

Profit Goals

Specific financial targets that a company aims to achieve within a certain period, often measured in terms of net income or margin percentages.

Customer Perceptions

The understanding or view that customers have towards a product, service, or business, influenced by marketing, experience, and word-of-mouth.

Satisfaction

The feeling of pleasure or contentment that comes from meeting or exceeding one's expectations from a product or service.