For example, if you have a deductible of $500 and the claim is for $1,700, you pay $500 and the insurance company pays $1,200. You may also have a deductible for personal injury protection or. If you were also a vice president of Company X, might your actions be different than if you were the CEO of some other company? Your renters insurance "deductible" is $500. Why or why not? In other words, the insurance company will only cover. Some car insurance companies set deductibles in percentages instead. What is the purpose of a deductible in the context of an insurance policy? b. Taking reasonable care of the property, giving notice if leaving at the end of the lease, using the rental for the purpose stated in the lease. The deductible is the amount of money you agreed to pay up front for repairs before the insurance company kicks in to pay for the rest. Explain in words why new common stock has a higher cost than retained earnings. What is the market interest rate on Colemans debt and its component cost of debt? This policy ensures continuity and provides large accounts with special attention.
Should the company use the composite WACC as the hurdle rate for each of its projects? Live in a congested area= more car accidents= higher car insurance rates= high crime= higher home insurance rates. Total bill for emergency room visit, doctors, X-ray, and cast = $2,500. corporation expects to receive 2 pounds of dividends per share from a British subsidiary this year. Related What Does Co Insurance Mean Learn about insurance premiums, deductibles and limits. Colemans preferred stock is riskier to investors than its debt, yet the preferreds yield to investors is lower than the yield to maturity on the debt.
Photo: kokouu / Getty Images Definition and Example of Insurance Deductibles Insurance deductibles have been part of insurance contracts for years. Is the shared cost amount (per their health plan). What factors should your committee consider when setting the CEOs compensation? Only 80% of charges will be reimbursed d. Keep in mind that deductibles and premiums are related. The lower the deductible you choose, the higher the premium you'll pay.
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