Question

The Ocean Grill has a Business Auto policy with Liability limits of $100,000 (Symbol 1), Collision coverage with a $500 deductible (Symbol 2 - Owned Autos Only) and Comprehensive coverage with a $250 deductible (Symbol 2 - Owned Autos Only). Last week the owner went to work only to find the company's F-150 delivery truck had been stolen. He immediately reported the theft to the police, and three days later it was found in a parking lot on the other side of town with $3,200 worth of damage. If you were assigned the claim how much would you pay on the claim?

(A) $3,000.00
(B) $2,950.00
(C) $2,250.00
(D) $2,500.00

Answer 1

The claim amount for the stolen truck would be $2,500.00.

Step-by-step explanation:

The claim amount to be paid on the stolen truck would be $2,500.00.

The reason for this is that the Comprehensive coverage with a $250 deductible (Symbol 2 - Owned Autos Only) applies to the theft of the truck. The deductible of $250 would be subtracted from the total damage amount of $3,200 to get $2,950. Since the Liability limits of $100,000 (Symbol 1) do not apply to the theft or damage of the truck, the full $2,950 would be paid.