Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien’s insurance plan will cover the damage he caused to the other car? a.
bodily injury
b.
property damage
c.
collision
d.
comprehensive damage

B. property damage

Explanation:

An insurance policy can be defined as a contractual arrangement between a company (insurer) and the insured (an individual or organization) to protect them against any financial loss, damage or unforeseen circumstances.

Generally, insurance companies (insurers) across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.

This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.

In this scenario, Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Thus, the component of Julien’s insurance plan which will cover the damage he caused to the other car is property damage.

A property damage can be defined as any destruction, injury or damage to a personal or real property such as a house, cars, bikes, ships etc due to self (willful) destruction, negligence of another or as a result of an unforeseen circumstance (nature).

keep quite, set up,sorry

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