Deck 12: Insurance

Question 1

Driver Buckley lives in a state having no-fault auto insurance. Goodroads Insurance Company insures Buckley for no-fault insurance only. Buckley's car is struck by a truck while waiting at a stop light. Medical expenses for Buckley and passenger are $547. Repairs to Buckley's car cost $320. Six months later, a car backs out of an alley and hits Buckley's car, causing medical expenses of $950 for Buckley and passenger and $1,249 for repairs to Buckley's car. Compute the amount Goodroads Insurance Company pays for Buckley's involvement in accidents this year.​

Answer 1

$1,497

Question 2

Driver Martin is given a 10% discount on auto insurance as a low-risk driver. The regular premium would be $1,800 for a year. If Martin qualifies for the discount every year for 5 years, compute the amount Martin will save on insurance premiums.​

Answer 2

$900

Question 3

Drivers Harris and Stein live in a state having no-fault auto insurance. Stein causes an accident by hitting Harris's car. Stein is not hurt. Harris spends three days in the hospital at a cost of $5,300. Compute the amount each driver's insurance company pays toward medical expenses.​

Answer 3

Harris's company: $5,300; Stein's company: $0

Question 4

Hartford Corporation insured a building for $400,000 for one year at a premium rate of $6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15% of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.​

Question 5

Allied Industries, Inc. insured an office building for $390,000 for one year at a premium rate of $7.10 per thousand. At the end of nine months, the insurance company canceled the policy. Compute the amount of the refund received by Allied Industries, Inc.

Question 6

Fuller Insurance Company insured Driver Hudson at an annual premium of $800. After 2 months, Fuller Insurance Company canceled the policy. Compute the amount of the refund to Hudson.​

Question 7

Cameron Insurance Company insured Driver Gifford at an annual premium of $740. After 6 months, Gifford sold the car and canceled the insurance. Cameron Insurance Company refunded the remaining half of the premium at the short rate based on a penalty of 15%. Compute the amount of the short-rate refund.

Question 8

A homeowner insured a house for $150,000 for one year at a premium rate of $5.00 per thousand. The homeowner canceled the policy during the year. The insurance company has a penalty of 15% for short-rate refunds. Compute the amount of the penalty.​

Question 9

Safeco Insurance Company insured Driver Fitzwater at an annual premium of $3,300. After one month, Fitzwater sold the car and canceled the insurance. Safeco Insurance Company refunded the remaining 11 months' premium at the short rate based on a 15% penalty. Compute the amount that the one month of insurance cost Fitzwater.

Question 10

An insured carries all three classifications of insurance, with a deductible of $500 for collision. The insured paid an annual premium of $1,720. The insured backed into a car in a parking lot, causing $580 damage to the car of the insured and $1,770 damage to the other car. Compute the amount that the insurance company made from the insured this year.​

Question 11

Manley Insurance Company does business in a state having no-fault insurance. An insured carries all classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,770. The insured struck a telephone pole causing medical expenses of $2,340 for his passenger, $620 damage to his car, and $1,840 damage to property. How much more did Manley Insurance Company pay out on behalf of the insured than it received as his annual premium?

Question 12

​Thomas Insurance Company does business in a state having no-fault insurance. Driver Jones is insured by Thomas Insurance Company and carries only no-fault insurance. Jones skids on a curve and hits a fruit stand. Medical expenses for Jones are $720 and are $630 for the only passenger. Repairs to the car cost $1,300. Repairs for the fruit stand cost $420. Compute the amount Jones and Thomas Insurance Company each had to pay toward repairs and medical expenses.

Question 13

Drivers Miller and Taylor live in a state having no-fault auto insurance. Taylor causes an accident by hitting Miller's bike. Taylor is not hurt. Miller spends five days in the hospital at a cost of $6,400. Compute the amount each driver's insurance company pays toward medical expenses.

Question 14

Driver Cooper has a poor driving record and pays double the usual premium as a high-risk driver. The regular premium would be $510 for a year. If Cooper must pay the high-risk premium every year for 5 years, how much more will Cooper pay for insurance premiums than a low-risk driver receiving a 10% discount over the same 5-year period?

Question 15

Universal Insurance Company does business in a state having no-fault insurance. An insured carries all three classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,790. The insured fell asleep at the wheel and had medical expenses for himself of $1,280 and auto repair expenses of $800. Compute the amount that Universal Insurance Company premium was over the amount the insurance company paid in benefits.

Question 16

Driver Blake, a low-risk driver, is insured by a company that gives a 5% discount for the first year, 10% the second year, 15% the third year, and 20% every year thereafter. Blake has qualified as a low-risk driver for the last 10 years. Compute the amount Blake saved in premiums if the regular premium is $2,000.

Question 17

John Christopher, a low-risk driver, is insured by a company that gives a 10% discount for the first year, 20% the second year, 25% the third year, and 30% every year thereafter. Christopher has qualified as a low-risk driver for the last 5 years. Compute the amount Christopher saved in premiums if the regular premium is $1,000.

Question 18

Driver Sanders has a poor driving record and pays triple the regular premium. The regular premium would be $2,100 and covers Sanders for all three classifications of insurance with a $500 deductible for auto collision. During the year, Sanders sideswiped a row of parked cars. Repairs to the parked cars cost $1,870, $4,950, $2,340, and $378. Repairs to Sanders' car cost $490. Compute the amount the insurance company paid out in benefits over the amount it received in premium for this policy.

Question 19

​Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.

Question 20

Brant Insurance Company insured Driver Moore at an annual premium of $1,000. After 3 months, Brant Insurance Company canceled the policy. Compute the amount of the refund to Moore.

Question 21

The owner of property valued at $140,000 insured the property for $90,000 for one year at a premium rate of $4.80 per thousand. The policy contained a 90% coinsurance clause. A fire caused $63,000 in damage. How much more did the insurance company pay the property owner for repairs for fire damage than the property owner paid the insurance company in premiums that year?​

Question 22

Property valued at $3,800,000 was insured for $3,100,000. The policy contained an 80% coinsurance clause. A fire caused $215,500 in damages. Compute the amount the property owner must pay if the property is repaired for $215,500.

Question 23

Property valued at $140,000 was insured for $90,000. The policy contained an 80% coinsurance clause. A fire caused $56,000 in damages. Compute the amount the insurance company paid for repairs.

Question 24

Martin Insurance Company issued insurance policies on buildings A and B in the same area for one year at a premium rate of $5.50 per thousand. Building A was insured for $75,000. Building B was insured for $83,000. Martin Insurance Company had a short-rate refund policy based on a penalty of 10% of the annual premium. At the end of the second month, building A was sold and the policy canceled by the building owner. At the end of the sixth month, Martin Insurance Company canceled the insurance on building B. Compute the amount Martin Insurance Company earned altogether by insuring buildings A and B.

Question 25

Property valued at $200,000 was insured for $140,000. The policy contained a 60% coinsurance clause. A fire caused $150,000 in damages. Compute the amount the property owner must pay if the property is repaired for $150,000.

Question 26

Davis Insurance Company insured Driver Ashley's two cars at annual premiums of $3,400 for car A and $2,440 for car B. Ashley sold both cars after six months and canceled the insurance. The insurance company refunded the remaining six months' premiums at the short rate based on a 15% penalty. Compute the amount of the total refund.​

Question 27

The Faulkner Company building was valued at $450,000. The building was insured for $400,000. The policy contains an 80% coinsurance clause. A fire caused damages of $260,000. Compute the amount the insurance company paid for damages.​

Question 28

The Jordan Company building was valued at $400,000. The building was insured for $200,000. The policy contained an 80% coinsurance clause. A fire caused $180,000 in damages. Compute the amount of the fire damage the Jordan Company had to pay.​

Question 29

Insured A, age 27, purchased a $35,000, 20-payment life policy with premiums payable annually. Insured B, also age 27, purchased a $35,000 straight-life policy with premiums payable semiannually. Both A and B lived 40 more years. How much more in premiums did insured B pay the insurance company during his lifetime than insured A paid during hers? Refer to Table 12-1. (1 year = 12 months.)​

Question 30

The Green Company building was valued at $220,000. The building was insured for $100,000 at a premium rate of $5.60 per thousand. The policy contained an 80% coinsurance clause. A small fire caused damages costing $35,200 to repair. Later in the year, another fire caused damages costing $105,600 to repair. How much more did the insurance company pay for repairs for fire damage for Green Company during the year than it earned in premiums from the Green Company for the year?

Question 31

An insured 28 year old purchased a $100,000, 20-payment life policy with premiums payable annually and lived 20 more years. How much more did the insured pay the insurance company in premiums during his lifetime than he would have paid for a $100,000 straight-life policy with premiums payable annually? Refer to Table 12-1. (1 year = 12 months.)​

Question 32

An insurance company has a standard coinsurance clause of 90%. Compute the amount of insurance coverage the owner of a building valued at $1,060,000 must carry in order to avoid being the bearer of part of the insurance.​

Question 33

The Jordan Appliance Company has two buildings. Building A is valued at $95,000 and is covered by a $60,000 insurance policy with an 80% coinsurance clause. Building B is also valued at $95,000 and is covered by a $50,000 insurance policy with a 75% coinsurance clause. Both buildings burned to the ground. Compute the amount of insurance money Jordan Appliance Company collected altogether for fire damages.

Question 34

Harrington Insurance Company insures four moving vans for National Moving Company. Annual premiums for the four trucks are: Truck A = $3,480; Truck B = $3,360; Truck C = $2,640; and Truck D = $4,100. Harrington Insurance Company charges a short-rate penalty of 15%. At the end of the second month, National Moving Company sold trucks A and B and canceled their insurance. At the end of the fourth month, National Moving Company sold truck C and canceled its insurance. Compute the amount National Moving Company paid Harrington Insurance Company for insurance during the year.

Question 35

Property valued at $172,000 was insured for $100,000. The policy contained a 90% coinsurance clause. A fire caused $77,400 in damages. Compute the amount the insurance company paid for repairs.

Question 36

The Morgan Company warehouse was valued at $2,400,000. The building was insured for $960,000. The policy contained an 80% coinsurance clause. A fire caused $660,000 in damages. Compute the amount the Morgan Company recovered from the insurance company for fire damage.

Question 37

Insurance Company A has a standard 90% coinsurance clause for all fire insurance coverage. Insurance Company B has a standard 75% coinsurance clause for all fire insurance coverage. A building is valued at $195,000. How much more insurance coverage would Insurance Company A require than Insurance Company B for full coinsurance coverage?

Question 38

The owner of property valued at $150,000 insured the property for $75,000 for one year at a premium rate of $4.90 per thousand. The policy carried a 75% coinsurance clause. A fire caused $56,250 in damages. Compute the amount the property insurance and repairs for fire damage cost the insured that year.​

Question 39

Property valued at $150,000 was insured for $100,000. The policy contained a 60% coinsurance clause. A fire caused $45,000 in damages. Compute the amount the insurance company paid for repairs.

Question 40

A client, age 26, is planning to purchase a $100,000, 20-payment life policy and is deciding whether to pay quarterly or semiannually. Compute the amount the client would save during her lifetime by choosing semiannual payments. Refer to Table 12-1. (1 year = 12 months.)

Question 41

An insured 25 year old purchased a $35,000, 20-payment life policy. Five years later he needed the maximum loan available on the policy. Compute the amount the insured could borrow. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Question 42

An insured 25 year old purchased a $60,000, 20-payment life policy with semiannual premiums. Five years later he needed the maximum loan available on the policy. How much more had the insured paid in premiums than he could borrow on the policy? Refer to Tables 12-1 and 12-2. (1 year = 12 months.)​

Question 43

An insured 26 year old purchased a $35,000, 20-year endowment policy with premiums payable quarterly. How much more did the insured pay the insurance company during her lifetime than she would have paid had she chosen annual premium payments? Refer to Table 12-1. (1 year = 12 months.)​

Question 44

An insured 25 year old purchased a $30,000 straight-life policy with annual premiums. Four years later she needed the maximum loan available on the policy. How much more had the insured paid in premiums than she could borrow on the policy? Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Question 45

An insured 25 year old purchased a $100,000, 20-year endowment policy with premiums payable semiannually. Compute the amount the insured paid the insurance company in premiums during his lifetime. Refer to Table 12-1. (1 year = 12 months.)

Question 46

A client, age 25, is deciding whether to purchase a $25,000, 20-year endowment policy or a $50,000, 20-payment life policy. He plans to build a house 10 years from now and to borrow the maximum available against any policy he owns at that time. How much more could the client borrow on the 20-payment life policy than he could borrow on the 20-year endowment policy? Refer to Table 12-2. (1 year = 12 months.)​

Question 47

An insured 25 year old purchased a $15,000 straight-life policy and a $5,000, 20-payment life policy. Fifteen years later she needed to borrow $2,500 on one of her policies. Determine which policy had a loan value in excess of $2,500. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Question 48

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. The Mighty Machinery Company has 20 employees. If the company stopped paying for health benefits for employees' dependents, compute the amount the company would pay this year in health premiums to cover only its employees.​

Question 49

An insured 27 year old purchased a $120,000, 20-year endowment policy with premiums payable semiannually. Compute the amount the insured paid the insurance company in premiums during his lifetime. Refer to Table 12-1. (1 year = 12 months.)

Question 50

A client, age 25, is considering purchasing a 20-payment life policy with annual payments. He wants to know how much more he will have paid the insurance company in premiums per $1,000 coverage during the 20-year period than he can borrow on the policy at the end of the 20 years. Compute how much more the client will have to pay per thousand. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)​

Question 51

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. An employee with nine dependents participates in the company health plan. Compute the amount deducted from the employee's wages in one year.​

Question 52

An insured 25 year old purchased a $75,000, 20-year endowment policy. Five years later he needed to borrow $30,000. After borrowing the maximum on his insurance, how much more did the insured need to borrow elsewhere? Refer to Tables 12-1 and 12-2. (1 year = 12 months.)​

Question 53

An insured 25 year old purchased a $50,000, 20-payment life policy. Four years later he needed the maximum loan available on the policy. Compute the amount the insured could borrow. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Question 54

An insured 25 year old purchased a $50,000, 20-year endowment policy with quarterly premiums. Ten years later he needed the maximum loan available on the policy. How much more had the insured paid in premiums than he could borrow on the policy? Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Question 55

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Carlson, his spouse, and their son are covered by Mighty Machinery Company's health plan. Carlson's doctor bills totaled $2,350 last year. Compute Carlson's total medical costs for the year for premiums, deductible, and his percentage of covered medical bills.​

Question 56

An insured 25 year old purchased a $20,000 straight-life policy. Three years later she needed the maximum loan available on the policy. Compute the amount the insured could borrow. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)​

Question 57

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Brewster, her spouse, and their 5 children are covered by Mighty Machinery Company's health plan. Last year Brewster's doctor bills totaled $5,180. Compute the amount Brewster must pay for her doctor bills.​

Question 58

An insured 27 year old purchased a $60,000, 20-year endowment policy with premiums payable annually. How much more did the insured pay the insurance company in premiums during his lifetime than he would have paid had he chosen a 20-payment life policy for the same amount and with annual premiums? Refer to Table 12-1. (1 year = 12 months.)

Question 59

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Adams and his spouse are covered by Mighty Machinery Company's health plan. Compute the total amount of money paid to the insurance company last year by Adams and the Mighty Machinery Company for Adams' health insurance coverage.​

Question 60

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
​Refer to Mighty Machinery Company. An employee with 2 dependents participates in the company health plan. Compute the amount deducted from the employee's wages in one year.

Question 61

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. The Mighty Machinery Company has 20 employees participating in the health plan. Four employees are single, five have one dependent, and 11 have multiple dependents. Compute the amount the employees' health coverage cost Mighty Machinery Company last year.​

Question 62

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Hadley, his spouse, and two children are covered by the company health plan. Last year Hadley's doctor bills totaled $3,840. Compute the amount of the doctor bills that Hadley paid.​

Question 63

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. A single employee participates in the company health plan. Compute the amount deducted from the employee's wages in one year.​

Question 64

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Epstein and her spouse are covered by the company health plan. Last year their doctor bills totaled $320. Compute the amount Epstein paid for medical coverage and care last year for herself and one dependent.​

Question 65

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Dankins has been employed by the Mighty Machinery Company for one year. He is single and participates in the company health plan. Dankins just had major surgery costing $16,750. How much more money did the insurance company pay out for Dankins than they received in premiums for Dankins' coverage?​

Question 66

Mighty Machinery Company
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550.
The Mighty Machinery Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents.
The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible.
To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company.
Refer to Mighty Machinery Company. Fenway and Gilbert both worked for Mighty Machinery Company two years ago. Each was single and participated in the company health plan individually. Last year they married each other and participated as employee and one dependent. Two years ago each had doctor bills of $500. This year their combined doctor bills were $1,000. How much less did Fenway and Gilbert pay for medical care and coverage last year as a couple than the year before as two individuals?​