Question 1

An auto insurance premium may be partially based on:

Accepted Answer

A) Attitude of driver 
B) Expected life of car 
C) Make of car 
D) Number of years one expects to drive a car 
E) None of these 
A) Attitude of driver 
B) Expected life of car 
C) Make of car 
D) Number of years one expects to drive a car 
E) None of these

Question 2

Calculate the optional bodily injury cost for the following: Class 10; optional bodily Injury: 100/300/50

Accepted Answer

A) $94 
B) $144 
C) $108 
D) $187 
E) None of these 
A) $94 
B) $144 
C) $108 
D) $187 
E) None of these

Question 3

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?

Accepted Answer

$40,000 × .8 = $32,0

Question 4

All premiums for universal life remain the same.

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

$70,000 / $100 = 700

Question 6

Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \
\hline \$ 80,000 & 26 \mathrm { M } & \text { 20-Pay Life } & \text { A } \
\hline
\end{array}$$

Accepted Answer

The answer of Find the following:
 \[\begin{array} { | l...

Question 7

Match the following terms with their definitions.
-Comprehensive

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

Question 8

Bill Small, age 28, would like to take out a 20-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?

Accepted Answer

A. $573.60

Question 9

Find the following:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Annual Premium } & \text { Canceled After } & \text { Canceled By } & \text { Premium Cost } & \text { Refund } \
\hline \$ 800 & 7 \text { months } & \text { Insurer } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

A. $466.67

Question 10

Al Lize, who lives in territory 5, carries 10/20/5 compulsory liability insurance, along with optional collision that has a $100 deductible. Al, who was at fault in an accident, caused $2,200 damage to the other auto and $900 damage to his own car. Also, the courts awarded $18,000 and $9,000, respectively, to the two passengers in the other car for personal injuries. How much does the insurance company pay and what is Al's share of the responsibility?

Accepted Answer

The answer of Al Lize, who lives in territory 5,...

Question 11

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. Using the table in the handbook, the refund to Jay is:

Accepted Answer

A) $980 
B) $852.60 
C) $127.40 
D) $186.20 
E) None of these 
A) $980 
B) $852.60 
C) $127.40 
D) $186.20 
E) None of these

Question 12

Calculate the cost of the premium:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Rating of Area } & \text { Class } & \text { Building } & \text { Contents } \
\hline 1 & \text { A } & \$ 90,000 & \$ 30,000 \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the cost of the premium:
 \[\begin{array}...

Question 13

Compulsory liability insurance includes bodily injury and property damage.

Accepted Answer

A) True 
 B)False

Question 14

Term insurance would pay the face amount of the policy in case of the death of the insured.

Accepted Answer

A) True 
 B)False

Question 15

Calculate the annual total auto premium from the following. There is compulsory insurance.
Territory 5
Class 10
Symbol 7
Age 4
Bodily Injury 100/300
Collision $200 deductible
Comprehensive $200 deductible

Accepted Answer

The answer of Calculate the annual total auto premium from...

Question 16

As a result of coinsurance, the insurance company might pay more than face value.

Accepted Answer

A) True 
 B)False

Question 17

The face amount is the amount stated in the policy.

Accepted Answer

A) True 
 B)False

Question 18

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:

Accepted Answer

A) $5,000 
B) $5,600 
C) $600 
D) $5,300 
E) None of these 
A) $5,000 
B) $5,600 
C) $600 
D) $5,300 
E) None of these

Question 19

Match the following terms with their definitions.
-Deductible

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

Question 20

Match the following terms with their definitions.
-Face amount

Accepted Answer

A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft 
A) Continual premium payments 
B) Used when insured cancels 
C) Blame doesn't matter in payoff 
D) Periodic payment 
E) Not optional
F)Combination of term and whole life
G)Result of a nonforfeiture value
H)Policyholder
I)Amount of insurance stated on the policy
J)Value of policy when terminated
K)Builds no cash value
L)Options when an insurance policy is terminated
M)One to receive face value of life insurance
N)Payment to insured from a loss
O)80%
P)Pay for repairs to one's auto
Q)Amount insured pays
R)The insurance company
S)Fire, theft

An auto insurance premium may be partially based on:

Calculate the optional bodily injury cost for the following: Class 10; optional bodily Injury: 100/300/50

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?

All premiums for universal life remain the same.

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?

Find the following: Face Value Age and Sex of Insured Type of Insurance Annual Premium \ 80,000 26 20-Pay Life A

Match the following terms with their definitions. -Comprehensive

Bill Small, age 28, would like to take out a 20-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?

Find the following: Annual Premium Canceled After Canceled By Premium Cost Refund \ 800 7 months Insurer A B

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. Using the table in the handbook, the refund to Jay is:

Calculate the cost of the premium: Rating of Area Class Building Contents 1 A \ 90,000 \ 30,000

Compulsory liability insurance includes bodily injury and property damage.

Term insurance would pay the face amount of the policy in case of the death of the insured.

Calculate the annual total auto premium from the following. There is compulsory insurance. Territory 5 Class 10 Symbol 7 Age 4 Bodily Injury 100/300 Collision $200 deductible Comprehensive $200 deductible

As a result of coinsurance, the insurance company might pay more than face value.

The face amount is the amount stated in the policy.

Match the following terms with their definitions. -Deductible

Match the following terms with their definitions. -Face amount

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters

Exam 20: Life, Fire, and Auto Insurance

An auto insurance premium may be partially based on:

Calculate the optional bodily injury cost for the following: Class 10; optional bodily Injury: 100/300/50

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?

All premiums for universal life remain the same.

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?

Find the following: Face Value Age and Sex of Insured Type of Insurance Annual Premium \ 80,000 26 20-Pay Life A

Match the following terms with their definitions. -Comprehensive

Bill Small, age 28, would like to take out a 20-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?

Find the following: Annual Premium Canceled After Canceled By Premium Cost Refund \ 800 7 months Insurer A B

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. Using the table in the handbook, the refund to Jay is:

Calculate the cost of the premium: Rating of Area Class Building Contents 1 A \ 90,000 \ 30,000

Compulsory liability insurance includes bodily injury and property damage.

Term insurance would pay the face amount of the policy in case of the death of the insured.

Calculate the annual total auto premium from the following. There is compulsory insurance. Territory 5 Class 10 Symbol 7 Age 4 Bodily Injury 100/300 Collision $200 deductible Comprehensive $200 deductible

As a result of coinsurance, the insurance company might pay more than face value.

The face amount is the amount stated in the policy.

Match the following terms with their definitions. -Deductible

Match the following terms with their definitions. -Face amount

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters