Exam 9: Risk Management

Complete the cost of the premium for fire insurance:

Collision and comprehensive:

If Joe decides to decrease his deductible to $200 for collision, what additional cost will result?

Alice Stone is thinking about taking out $90,000 of five-year term insurance. Alice is 35 years old. What will her annual premium be?

Permanent protection is provided by term insurance.

The short rate cancellation table is used if the insured cancels the policy.

The premium is the payment(s) that is made to pay for the cost of an insurance policy.

An auto insurance premium may be partially based on:

A 09-year endowment does not build up any cash value by the end of year 5.

Calculate Joe Brake's auto premium:

The face amount is the amount stated in the policy.

Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. At the end of 20 years, the cash value of his policy is:

John Davis's store is worth $400,000 and is insured for $240,000. Assuming an 80% coinsurance clause and a fire that caused $100,000 of damage, what is the liability of the insurance company? $75,000

Insurance required to meet coinsurance is the coinsurance rate times the replacement value.

All states have the same compulsory insurance.

The beneficiary pays the insurance to the insured.

The actual amount of insurance carried is called the face value.

Jenny Siebert purchased a new Ford Explorer and insured it for compulsory 10/20/5. While traveling to work, Jenny hit another vehicle, injuring both occupants, who were awarded personal injury judgments of $96,000 and $15,000, respectively. What will Jenny have to pay out of pocket for their injuries?