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Abdulla has insured his vehicle with JAA Insurance Company. Throughout the year, he experiences a loss in January costing 1444, another in May costing 2588, and the last in December costing 2820. If Abdulla has a straight deductible of 913, how much will the insurer pay?

Answer :

To calculate the amount the insurer will pay, we need to consider the deductible and the total losses incurred by Abdulla. The deductible is the amount that Abdulla is responsible for paying out of pocket before the insurance coverage kicks in.

In this case, Abdulla has a straight deductible of $913.

Abdulla experienced three losses throughout the year: $1444 in January, $2588 in May, and $2820 in December. To determine the amount the insurer will pay, we subtract the deductible from the total losses and consider any applicable policy limits. Since there is no information provided about policy limits, we'll assume there are no limits imposed.

Total losses incurred by Abdulla:

$1444 + $2588 + $2820 = $6852

Amount the insurer will pay:

Total losses incurred - Deductible = $6852 - $913 = $5939

Therefore, the insurer will pay $5939 towards Abdulla's losses.

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