Exam 9: Risk Management

Nonforfeiture values could result in the insured being paid the cash value of the policy and the policy being terminated.

Calculate Joe Wheel's auto premium.

Calculate the cost of the premium:

What is the cash value of the policy at the end of 15 years?

Compulsory liability insurance includes bodily injury and property damage.

If the insurance company cancels a fire insurance policy, the refund to the insured will be less than if the insured cancels the policy.

In terms of premium cost, the most expensive type of insurance is:

Complete the cost of the premium for fire insurance:

Lee's toy store is worth $400,000 and is insured for $300,000. Assuming an 80% coinsurance clause and a fire that caused $190,000 of damage, the liability of the insurance company is:

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 months, Jay canceled the policy since his pizza shop went out of business. The refund to Jay is:

The property of Lance's Garage is worth $90,000. Lance has a fire insurance policy of $40,000 that contains an 80% coinsurance clause. On a fire that causes $60,000 of damage, the insurance company pays:

Calculate the annual total auto premium from the following. There is compulsory insurance.

Round all answers to nearest cent (as appropriate). LIFE INSURANCE Calculate annual premium:

Reduced paid-up insurance means the policy continues for life at a reduced face amount.

The insurance required to meet coinsurance is:

Extended term insurance means the policy continues but at a face amount that is less than the original policy.

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?

Abe Blerf insured his shop with fire insurance for $70,000 at a cost of $.83 per $100. Eight months later, his insurance company canceled his policy because of failure to correct fire hazards. What did Abe pay for the eight months of coverage?

Calculate cost and refund (use table in text if needed):