Jill paid an annual premium of $2,000 in total coverage of her homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. ten years into her policy, a friend fell off a ladder while working on the roof of her house and claimed $75,000 in medical expenses. eleanor's insurance company paid the claim. did the cost of the annual premiums outweight the benefit of transferring the risk of the insurance company?

No the cost of the annual premium for 10 years was less than the accident
no the cost of the annual premium for 10 years was more than the claime

Question

Jill paid an annual premium of $2,000 in total coverage of her homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. ten years into her policy, a friend fell off a ladder while working on the roof of her house and claimed $75,000 in medical expenses. eleanor's insurance company paid the claim. did the cost of the annual premiums outweight the benefit of transferring the risk of the insurance company?

No the cost of the annual premium for 10 years was less than the accident
no the cost of the annual premium for 10 years was more than the claime

lexiyowell · Answer

yes the cost of the annul premium for 10 years was the same as the accident claims 
yes the cost of the annul premium for 10 years was more than the accident claimes