Exam 9: Risk Management

Melissa Toby, age 36, bought a straight-life insurance policy for $80,000. Calculate her annual premium. If after 20 years she no longer pays premiums, what nonforfeiture options are available to her?

Al Smith, who lives in territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Al, who was at fault in an accident, caused $4,000 damage to the other auto as well as $900 damage to his own car. Also, the courts awarded $15,000 and $7,000, respectively, to the two passengers in the other car for personal injuries. Al is responsible to pay a total of:

Calculate the annual insurance premium for the following: Rating area: 3; class B; building $95,000; contents for $50,000.

Universal life provides whole life protection.

Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was:

Reduced paid-up insurance:

Jim Leary insured his bookstore with a fire insurance policy of $90,000 at a cost of $.58 per $100. Eight months later his insurance company canceled the policy because of failure to correct a fire hazard. What did Jim have to pay for the eight months of coverage?

Janet opened a second bridal shop and paid $1,200 for annually fire insurance. As a result of the Great Recession, she was forced to close her shop after four months. What did the insurance cost her?

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

Calculate Joe Wheel's auto premium:

Bill Small, age 28, would like to take out a 09-year endowment policy that has a coverage amount of $30,000. Can you calculate for Bill (A) his annual premium and (B) the cash value at the end of 10 years?

Matt Clark, age 27, decided to take out a limited payment life policy. He chose this because he expects his income to decline in future years. Matt decided to take out a 09-year payment life policy with a coverage amount of $90,000. Calculate his annual premium. If he stops paying premiums after 15 years, what will his cash value be?

Joe Rossen opened a pizza shop. He insures his shop for $90,000 for fire. What is his insurance premium if the rate per $100 is $.83?

Given the following information, the total annual premium is: Sam Montgomery: territory 5 Classified driver 17 Car age 4 Symbol 5 State has compulsory insurance and the following options:

The one receiving the insurance coverage is the insured.

Term insurance builds up no cash value.

Joan's Hardware Shop is worth $40,000 and is insured for $30,000. Assuming an 80% coinsurance clause, what would the insurance company pay if a fire caused $20,000 of damage to the shop?