Exam 8 Practice Question 7
Study guide: Exam 8
An insured has large deductible policies on two lines of business: workers compensation with a $250,000 per-occurrence deductible, and auto liability with a $100,000 per-occurrence deductible. It also buys clash coverage that sets a single retention of $300,000 on the sum of retained losses from one occurrence that affects both lines.
One of its drivers causes an at-fault accident that injures the driver (a workers compensation loss of $260,000) and a third party (an auto liability loss of $140,000).
Calculate the insured's total retained loss from this occurrence, in thousands.
- A) 100
- B) 250
- C) 300
- D) 350
- E) 400
Answer this question and see the worked solution