Deck 7: Insurance

Question 1

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

Answer 1

False

Question 2

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

A) $37.50
B) $75.00
C) $900.00
D) $1,008.00

Answer 2

B

Question 3

The policyholder is the insurance company that holds the insurance policy for a given individual or business.

Answer 3

False

Question 4

Ridell's employer pays for $60 of his monthly premium for individual health insurance. If the individual annual insurance premium is $1,596, how much does Ridell pay each year?

A) $73.00
B) $133.00
C) $876.00
D) $1,596.00

Question 5

The Carlisles insure their home for $190,000. The annual insurance premium is $5.95 per $1,000 of insurance. How much is the Carlisle's premium?

A) $1,900.00
B) $1,130.50
C) $565.25
D) $319.33

Question 6

Collision insurance coverage pays for property damages that the insured causes to another vehicle in an accident.

Question 7

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?

A) $423.08
B) $541.67
C) $1,787.50
D) $6,500.00

Question 8

Adrienne carries 25/50/10 liability insurance on her car. She was recently in an accident where she was at fault. The other driver, Madeleine, had $5,500 worth of personal injury and $9,500 damage to her car. Adrienne had $8,600 in damages to her car. Which will not be covered by Andrienne's insurance?

A) Madeleine's personal injury claim
B) Madeleine's property damage claim
C) Adrienne's property damage claim
D) None of the above

Question 9

Parker Manufacturing buys life insurance policies for their top three employees. They purchase $225,000 term policies for each employee, quoted at $3.37 per $1,000 for one year. How much will the monthly premium be for all three employees?

A) $63.19
B) $189.56
C) $758.25
D) $2,274.75

Question 10

Regional Corporation offers its employee's healthcare coverage for which they pay $85 of each employee's premium per month. The individual annual premium is $2,100. An additional $110 is added to the individual monthly premium for family coverage. What is the employee's monthly premium for individual and family health coverage?

A) Individual: $85.00; Family: $195.00
B) Individual: $90.00; Family: $200.00
C) Individual: $167.92; Family: $277.92
D) Individual: $175.00; Family: $285.00

Question 11

Barrett Corporation has contracted with Allied Health Care for a group health insurance plan. Barrett will pay $120 of each employee's premium per month. The individual annual premium is $1,750. An additional $90 is added to the individual monthly premium for family coverage. What is the employee's monthly premium for individual and family health coverage?

A) Individual: $25.83; Family: $115.83
B) Individual: $120.00; Family: $210.00
C) Individual: $137.50; Family: $227.50
D) Individual: $145.83; Family: $235.83

Question 12

A deductible is the amount subtracted from an insurance settlement.

Question 13

What amount of property insurance coverage is needed to equal 80% of the property value of a home valued at $332,000?

A) $265,600
B) $66,400
C) $26,560
D) $6,640

Question 14

Frank had a car accident in which the person he hit sustained $37,000 in injuries and their car was totaled, which had a value of $32,500. Frank has 50/100/15 liability insurance. For which amount of property damages will Frank be personally liable?

A) $0
B) $17,500
C) $22,000
D) $32,500

Question 15

If a company contributes $55 to each employee's monthly healthcare insurance premium and the annual individual premium is $1,980, then the individual monthly premium is $165.

Question 16

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

A) $775
B) $968
C) $3,100
D) $7,750

Question 17

Conway's Hardware suffers $95,000 in fire damage. The building is valued at $450,000, and the owner has it insured for $300,000 with 80% coinsurance. How much will the insurance company pay?

A) $63,500
B) $78,850
C) $95,000
D) $300,000

Question 18

What is the annual premium for a $125,000 term life insurance policy quoted at $2.95 per $1,000?

A) $328.75
B) $368.75
C) $2,950.00
D) $4,425.00

Question 19

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

A) $129,600.00
B) $12,960.00
C) $1,296.00
D) $129.60

Question 20

Which type of insurance pays for damages to the insured person's vehicle as the result of vandalism?

A) collision
B) comprehensive
C) liability
D) medical payments

Question 21

A small business owner uses an Excel spreadsheet to calculate the costs of various health insurance options for her employees. The individual annual premium is in cell B5. The employers monthly contribution is in Cell D9 and the monthly cost of the family option is in cell B6. Which multimath formula should be entered in Cell E9 to calculate the monthly premium for an employee who selects the individual-only healthcare?

A) =(B5/12)+B6
B) =(B5/12)-D9
C) =B5-D9
D) =B5+B6-D9

Question 22

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?

Question 23

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

Question 24

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.

Question 25

Determine the annual premium due for property insurance for $215,000 coverage at $4.25 per $1,000.

Question 26

Anchors Away Charter Boats purchased a second marina valued at $565,000. Their insurance company quoted them $3.75 per $1,000 for insurance. How much would a two-year property insurance premium cost?

A) $301.33
B) $750.00
C) $2,118.75
D) $4,237.50

Question 27

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?

Question 28

The Weinmans own a clothing store which they cover with an 80% coinsurance policy. If the value of the hardware store is $124,000, what is the Weinman's amount of coverage?

Question 29

Byron Trenton wants to purchase a life insurance policy worth $200,000. His insurance agent quoted his monthly premiums at $57.50 per month. What is the cost of the insurance per $1,000?

Question 30

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?

Question 31

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?

Question 32

Which amount will the insurance company pay on a claim filed by a business insured for 80% of the value with an 80% coinsurance plan, where the value of the business is $190,000 and the loss is $165,000?

A) $132,000
B) $152,000
C) $165,000
D) $190,000

Question 33

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?

Question 34

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

Question 35

Guiseppe's restaurant is valued at $182,000. The shop is insured for $130,000. Guiseppe has an 80% coinsurance policy, and they have a fire which causes $150,000 in damage. How much will Guiseppe have to personally pay for damages?

Question 36

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.

Question 37

A barbershop suffers $65,000 in fire damage. The shop is insured for $145,000 and has a value of $225,000. There is an 80% coinsurance fire policy. How much will the insurance company pay?

A) $225,000
B) $145,000
C) $65,000
D) $52,650

Question 38

What is the amount of annual premium due for a $1,500,000 term life insurance policy quoted at $4.60 per $1,000?

Question 39

The _____________ is the payment to the insurance company for the insurance policy.

Question 40

Claude Nickelson has 25/50/10 liability insurance. He crashes into Irene Newell's automobile, causing $8,200 worth of personal injury and $9,700 worth of vehicle damage. How much will Claude's insurance pay for this claim?

Question 41

A business is insured with an 80% coinsurance plan where the value of the business is $140,000. The business has purchased $100,000 of insurance. There is a fire at the business, and it has $72,000 worth of damage. What amount is 80% of the value? How much of the damages will be covered by their insurance policy?

Question 42

Leonard uses Excel to track life insurance coverage and cost for his clients. Column B contains the amount of coverage, and Column C contains the cost per thousand. What is the formula that he should key in Cell D9 to calculate the annual premium and in Cell E9 for the monthly premium?

Question 43

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.

Question 44

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

Question 45

The person who represents an insurance company and investigates claims is an ____________.

Question 46

Elizabeth and Darcy own an interior design business. They want to set up group health insurance for themselves and their 4 employees. Each policy will cost $2,700 annually. What is the monthly premium for each employee if the company covers $100 of the monthly premium?

Question 47

An Excel spreadsheet is being used to track insurance payments for homeowners insurance with a coinsurance clause. The following are the column headings: A is Replacement Value of the Building, B is Face Value of the Policy, C is Coinsurance Clause Percent, D is Amount of Insurance Required, E is Amount of Loss, F is Percent of Loss Insurance Will Pay, and G is Amount of Loss Insurance Will Pay.

What is the formula to determine the percent of loss insurance will pay in Row 15?

Question 48

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.

Question 49

In Column J of a spreadsheet, an insurance agent wants to sum the amounts his company owes for medical expenses for two parties and for property damage. These amounts are in Columns G, H, and I. Explain two ways to sum these cells using Row 12.

Question 50

An Excel spreadsheet is being used to track insurance payments for homeowners insurance with a coinsurance clause. The following are the column headings: A is Replacement Value of the Building, B is Face Value of the Policy, C is Coinsurance Clause Percent, D is Amount of Insurance Required, E is Amount of Loss, F is Percent of Loss Insurance Will Pay, and G is Amount of Loss Insurance Will Pay.

What is the formula to determine the amount of loss insurance will pay in Row 15?

Question 51

A _________________ is the person or persons designated to receive the proceeds of a life insurance policy in the event of the insured's death.

Question 52

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.

Question 53

Calculate the individual monthly premium for an employee whose annual premium is $1,860 and whose employer contributes $65.50 per month.

Question 54

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?

Question 55

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