-
The premium is the payment(s) that is made to pay for cost of insurance policy.
(3 points)
-
Premiums for straight-life are higher than for term insurance.
(3 points)
-
Twenty-payment life requires premiums for 20 years although the insured is protected till death.
(3 points)
-
Extended term insurance means the policy continues but at a face amount that is less than the original policy.
(3 points)
-
The cash value of a life insurance policy is a cheap source of money.
(3 points)
-
The premium for fire insurance is found by the insured value divided by 100 times the table rate.
(3 points)
-
The actual amount of insurance carried is called the face value.
(3 points)
-
Due to coinsurance the insurance company might pay more than face value.
(3 points)
-
Lowering deductibles for collision will result in increased premiums.
(3 points)
-
Due to few suits as well as high operating costs no fault has reduced some premium costs.
(3 points)
-
The one named in the policy to receive the insurance proceeds in case of the death of one taking out the policy is the:
(3 points)
-
In terms of premium cost the most expensive type of insurance is:
(3 points)
-
Reduced paid-up insurance:
(3 points)
-
If insured cancels a fire insurance policy after 7 months the refund will be: (Use table in handbook)
(3 points)
-
Collision and comprehensive:
(3 points)
-
Joe's office building with a $250,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $90,000. By using the tables in the handbook the total annual premium is:
(3 points)
-
The property of Jim's Garage is worth $80,000. Jim has a fire insurance policy of $30,000 that contains an 80 percent coinsurance clause. The insurance company pays on a fire that causes $50,000 damage:
(3 points)
-
Ron Howard had taken out a $125,000 fire insurance policy for his new restaurant at a rate of $.66 per $100. Eight months later, Ron canceled the policy and decided to move his store to a new location. The cost of premium to Ron is: (Use the table in the handbook)
(3 points)
-
Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $.49. At the end of 10 moths Jay canceled the policy since his pizza shop went out of business. By using the table in the handbook, the refund to Jay is:
(3 points)
-
Given the following information, as well as using the tables in the handbook, the total annual premium is:
Bill Jay - Territory 5
Classified Driver 18
Car age 5 Symbol 6
State has compulsory insurance and the following options:
Damage to someone else's property
| 10M
|
Comprehensive
| $200 deductible
|
(3 points)
-
Note: Round all answers to nearest cent (as appropriate).
LIFE INSURANCE
Use tables in handbook (for females subtract 3 years)
Calculate Annual Premium
Face Value
| of Insured
| Type of Insurance
| Annual Premium
|
A) $108,000
| 21M
| 5-Year Term
| A
|
B) $40,000
| 42F
| Straight Life
| B
|
C) $90,000
| 22M
| 20-Pay Life
| C
|
D) $120,000
| 32F
| Straight Life
| D
|
E) What is cash value of policy in (D) at end of 10 years?
A. ______________
B. ______________
C. ______________
D. ______________
(2 points)
(* 4000 character limit)
-
Calculate the amount the Insurance Company will pay
Value of
| Amount of
| Kind of
| Actual Fire
| Amount Insurance
|
Property
| Insurance
| Policy
| Loss
| Company will pay
|
$70,000
| $40,000
| 80% Co-Ins
| $11,200
| A
|
$90,000
| $50,000
| 80% Co-Ins
| $36,000
| B
|
(2 points)
(* 4000 character limit)
-
Calculate Cost and Refund (Use table in text if needed)
Premium
| Canceled After
| Canceled By
| Premium Cost
| Refund
|
(2 points)
(* 4000 character limit)
-
Melissa Sorez, age 42, takes out as $300,000 five-year term insurance policy. What is her annual premium? at the end of 3 years, what is her amount of cash value that is built up?
(2 points)
(* 4000 character limit)
-
Joan's Hardware Shop is worth $40,000 and is insured for $30,000. Assuming an 80% coinsurance clause what would the insurance company pay if a fire caused $20,000 damage to the shop?
(2 points)
(* 4000 character limit)
-
Jim Leary insured his bookstore with a fire insurance policy of $90,000 at a cost of $.58 per $100. Eight months later his insurance company canceled his policy because of a failure to correct a fire hazard. What did Jim have to pay for the eight months of coverage?
(2 points)
(* 4000 character limit)
-
Face Value
| of Insured
| Type of Insurance
| Premium
|
A. $120,000
| 20M
| 5-Year Term
| A
|
(2 points)
(* 4000 character limit)
-
Face Value
| of Insured
| Type of Insurance
| Premium
|
B. $60,000
| 38F
| Straight Life
| B
|
(2 points)
(* 4000 character limit)
-
Face Value
| of Insured
| Type of Insurance
| Premium
|
D. $50,000
| 28M
| Straight Life
| D
|
What is cash value of policy in (D) at end of 20 years?
(2 points)
(* 4000 character limit)
-
Face Value
| of Insured
| Type of Insurance
| Premium
|
(2 points)
(* 4000 character limit)
-
Face Value
| of Insured
| Type of Insurance
| Premium
|
(2 points)
(* 4000 character limit)
-
Calculate cost of premium.
Rating of Area
| Class
| Building
| Contents
|
(2 points)
(* 4000 character limit)
-
Calculate cost of premium.
Rating of Area
| Class
| Building
| Contents
|
(2 points)
(* 4000 character limit)
-
Value of
| Amount of
| Kind of
| Actual Fire
| Amount Insurance
|
Property
| Insurance
| Policy
| Loss
| Company Will Pay
|
$600,000
| $400,000
| 80% Coins.
| $400,000
| B
|
(2 points)
(* 4000 character limit)
-
Annual
| Canceled
| Canceled
| Premium
| |
(2 points)
(* 4000 character limit)
-
Using the tables in the handbook calculate Joe Brakes; auto premium
Class 17 operator
| Optional:
| 100/300 bodily
| Towing
|
Compulsory
| 10/20/5
| Collision
| $300 deductible
|
Symbol 6,
| Age 3
| Comprehensive
| $300 deductible
|
| Damage to someone else's property 25 M
|
(2 points)
(* 4000 character limit)
-
Using the tables in the handbook calculate Joe Wheel's auto premium
Class 17 operator
| Optional:
| 100/300 bodily
| Towing
|
Compulsory
| 10/20/5
| Collision
| $300 deductible
|
Symbol 6,
| Age 3
| Comprehensive
| $300 deductible
|
| Damage to someone else's property 25 M
|
(2 points)
(* 4000 character limit)
-
Class 17 operator
| Optional:
| 100/300 bodily
| Towing
|
Compulsory
| 10/20/5
| Collision
| $300 deductible
|
Symbol 6,
| Age 3
| Comprehensive
| $300 deductible
|
| Damage to someone else's property 25 M
|
If Joe decides to decrease his deductible to $200 for collision, what additional cost will result?
(2 points)
(* 4000 character limit)
-
John Davis' store is worth $400,000 and is insured for $240,000. Assuming an 80 percent coinsurance clause and a fire that caused $100,000 damage, what is the liability of the insurance company?
(2 points)
(* 4000 character limit)
-
John Jay carries a $500 deductible for collision. An accident resulted in $850 worth of damage to his car. What portion will the insurance company pay?
(2 points)
(* 4000 character limit)