Exam 7: Insurance

Term life insurance is a type of insurance policy that is limited to the life of the person for whom the policy was purchased.

Reliable Car Rental purchases an 80% property coinsurance policy on their building, valued at $330,000. The company insures the business for 80% of the value. If there is a fire at Reliable which causes $300,000 worth of damage, how much will the insurance pay and how much will Reliable pay?

___________________ protects the insured against property damage caused by another driver without liability insurance.

Veronica's annual healthcare premium is $1,908. Veronica pays $84 of the monthly premium. How much does Veronica's employer contribute monthly?

Alicia drives a company-owned car. Her company carries 25/50/25 automobile liability coverage. Alicia has an accident, which is her fault, during the business day. In the accident, Grant Thomas has $12,500 in injuries, Malcolm James has $27,000 in injuries, and Sarah White has $10,000 in injuries. The damage to Grant's automobile is $17,000. Determine the amount that the insurance company will pay for each person's injuries and for the damage to Grant's vehicle.

The Dairy Barn has an 80% property coinsurance policy on their building, valued at $60,000. The store suffers $22,000 in fire damage. The owners have insuranced the store for $40,000. How much will the insurance company pay?

Melissa has 15/30/5 liability insurance. She has an accident with Brett causing $3,000 worth of personal injury and $6,800 worth of vehicle damage. How much will Melissa's insurance pay for this claim?

What is the formula for determining the annual premium for a term life insurance policy?

A ________________ clause allows the insured to bear part of the loss when there is damage to the property insured.

What is the annual premium for a $250,000 term life insurance policy quoted at $3.10 per $1,000?

Which is the annual premium due for homeowner's insurance on a house covered for $275,000 with a price of $6.50 per $1,000?

What amount of property insurance coverage is needed to equal 80% of the property value of a home valued at $162,000?

What is the annual premium for a $200,000 term life insurance policy with a cost per $1,000 of $3.20?

If the Townsend family pays $4.10 per $1,000 of property insurance, and their insurance bill is $758.50 annually, what is the amount of coverage on their home?

Beckett International LLC offers its employees healthcare coverage for which the company pays $80 of each employee's premium per month. The individual annual premium is $1,920. If the employee wishes to cover their family, an additional $95 is added to the individual monthly premium. What is the employee's monthly premium for family health coverage?

Calculate the monthly family premium when the individual annual premium is $1,500, the employer contributes $50 per month, and the family coverage is an additional $72 per month.

Patrick is planning on buying a restaurant valued at $235,000. If Patrick buys an 80% coinsurance policy, how much coverage will he have for the restaurant?

Miriam is in a car accident with the Blakely family. Miriam has 25/50/10 car insurance. Mr. Blakely has $27,500 in injuries, and Mrs. Blakely has $24,000 in injuries. The Blakely's automobile has $12,700 worth of damage. Determine the amount Miriam will pay and the amount her insurance company will pay.

Calculate the individual and family premiums when the individual annual premium is $2,004, the employer contributes $65 per month, and the family coverage is an additional $89 per month.

Tyrone Bentley is in a car accident with Allejandro Jaurez. Tyrone has 15/30/5 car insurance coverage. Allejandro does not suffer any serious injuries, however his car has damages of $14,300. Determine the amount Tyrone will pay and the amount his insurance company will pay.