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3. What role does math play in the insurance industry? a. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit b. Insurance companies use algebra and geometry to calculate the distance from clients' major emergencies to nearest hospitals c. Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies d. Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit INFOGRAPHIC: Insurance Premiums, Deductibles+Limits In addition to having a fixed premium, most insurance plans also have a deductible and a coverage limit.Use this infographic to answer the questions. 1. Jerry has an insurance policy with a premium of 150 per month. In June, he causes an accident and receives a bill with a total cost of 6000. His deductible is 1500 and his coverage limit is 10,000. a. How much money will Jerry have to pay for the accident's bill? b. How much total money will Jerry have to pay in the month of June? 2. Make an assumption about the relationship between coverage limit and premium. Explain your thinking.

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3. What role does math play in the insurance industry? a. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit b. Insurance companies use algebra and geometry to calculate the distance from clients' major emergencies to nearest hospitals c. Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies d. Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit INFOGRAPHIC: Insurance Premiums, Deductibles+Limits In addition to having a fixed premium, most insurance plans also have a deductible and a coverage limit.Use this infographic to answer the questions. 1. Jerry has an insurance policy with a premium of 150 per month. In June, he causes an accident and receives a bill with a total cost of 6000. His deductible is 1500 and his coverage limit is 10,000. a. How much money will Jerry have to pay for the accident's bill? b. How much total money will Jerry have to pay in the month of June? 2. Make an assumption about the relationship between coverage limit and premium. Explain your thinking.

3. What role does math play in the insurance industry? a. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit b. Insurance companies use algebra and geometry to calculate the distance from clients' major emergencies to nearest hospitals c. Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies d. Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit INFOGRAPHIC: Insurance Premiums, Deductibles+Limits In addition to having a fixed premium, most insurance plans also have a deductible and a coverage limit.Use this infographic to answer the questions. 1. Jerry has an insurance policy with a premium of 150 per month. In June, he causes an accident and receives a bill with a total cost of 6000. His deductible is 1500 and his coverage limit is 10,000. a. How much money will Jerry have to pay for the accident's bill? b. How much total money will Jerry have to pay in the month of June? 2. Make an assumption about the relationship between coverage limit and premium. Explain your thinking.

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LeonardAdvanced · Tutor for 1 years

Answer

### 1.a) $1500<br />### 1.b) $1650<br />### 2. A higher coverage limit typically requires a higher premium. This is because the insurance company assumes greater risk with a higher coverage limit, and the increased premium compensates for this risk.<br />### 3. a

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## Step 1: Calculate Jerry's out-of-pocket expense for the accident.<br />### Jerry's bill is $6000, and his deductible is $1500. This means he has to pay the first $1500 himself. Since the total bill is more than his deductible, he pays the deductible amount.<br /><br />## Step 2: Calculate Jerry's total expense for June.<br />### Jerry's monthly premium is $150. In June, he also had to pay his $1500 deductible due to the accident. Therefore, his total expense for June is $150 + $1500 = $1650.<br /><br />## Step 3: Relationship between coverage limit and premium.<br />### Generally, a higher coverage limit corresponds to a higher premium. This is because a higher coverage limit means the insurance company is taking on more risk; they are liable for a larger amount in case of an accident. To compensate for this increased risk, they charge a higher premium.
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