Fin 431 – Assignment 6 Answer Key1. Auto: $11,400 = 10,000 + 1,500 – 100 (No worker’s comp because Ike is the owner)2. Homeowner’s: $1,000 medical - don’t need to be liable to pay medical3. CNA: $110,0004. Liberty Mutual: $135,400 = (400*26) + 125,0005. Economy: $83,0006. Travelers BERP: $500,000 - BERP because claim is filed after year end and was known within the 60 day period7. Hartford: $26,000 = 20,000 + 5,000 + 1,000 (1,000 limit on restoring the records)8. Travelers: $2,0009. Auto: $264,900 - Excess medical payments are available for both passengers because they were hit by an uninsured driver. So, $100,000 liability and $25,000 for each passenger and 15,000 minus a $100 deductible for the car10. Travelers: $500,000 - You have not met your limits because this is a general aggregate loss and number 6 was a products aggregate loss11. Homeowners: $5,700 = 2,500 + 3,000 + 200 Apply the deductible, then the limit for Homeowner’s. So, the $250 deductible taken from the $500 cash is $250, to which you apply the $200 limit.12. $0 - Not covered because it is not Ike’s car and it is not in the course of employment13. $0 - Not covered because it is in Belgium and your policy only covers the U.S.and its territories, Canada, and 50 miles into Mexico14. AIG: $1,000,000 - this comes out of the products aggregate because it is a completed operation15. Hartford BPP $135,000 – $120,000 under Building and $15,000 under Your Business Personal Property 16. Liberty Mutual: $60,000 = (60%*500) * 200 weeks for losing hearing in both ears17. AIG: $25,000 - General aggregate18. AIG: $1,000,000 - General aggregate – this is not excluded by the pollution clause because the customer stored the chemicals on their land. Please read the clause in the book if you are confused.19. AIG BERP: $975,000 - This comes out of the general aggregate. It is BERP because it is a known occurrence within the 60 day period after year end and turns into a claim within 5 years.20. AIG SERP: $150,000 – This is SERP because it is not known to the insurer until after the end of the 60 day
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