Question

Just before the accident, Alicia actually reduced her policy from $50,000 to $25,000.
How much does Alicia have to pay?


How much does her insurance pay?

Answer 1

Alicia has to pay $15,500. Meanwhile, her insurance pays $25,000.

Solution

After reducing her policy coverage from $50,000 to $25,000 this implies that her insurance would only cover any claim up to a maximum of $25,000.

In this case, we subtract the amount to be compensated according to the verdict ($40,000) from $25,000 to get the amount not covered by her policy and which Alicia would have to pay herself

40000-25000 = 15000

$15,000 + $500 deductible = $15,500.

You can learn more about the implications of having an insurance policy here https://brainly.com/question/4953989

#SPJ1