. a. A manufacturing firm incurred the following insured losses, in the order given, during the current policy year. Loss Amount of Loss A $ 2,500 B 3,500 C 10,000 How much would the company’s insurer pay for each loss if the policy contained the following type of deductible? 1. $1,000 straight deductible 2. $15,000 annual aggregate deductible b. Explain the coordination-of-benefits provision that is typically found in group medical expense plans

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500