Question 1

Find the indicated tax rate.
-

Accepted Answer

A) $74.30 
B) 7.43 
C) $0.74 
D) 74.3 
A) $74.30 
B) 7.43 
C) $0.74 
D) 74.3

Question 2

Find the annual insurance premium.
-A person's youthful-operator factor is 2.35. The annual premium for liability coverage is $266.70 for bodily injury and $157.80 for property damage.

Accepted Answer

A) $1,021.08 
B) $999.93 
C) $424.50 
D) $997.58 
A) $1,021.08 
B) $999.93 
C) $424.50 
D) $997.58

Question 3

Find the tax rate for the area. Round to the nearest tenth of a percent.
-Total tax needed: $321,000 Total assessed value: $53,103,000

Accepted Answer

A) 6.0% 
B) 0.6% 
C) 0.8% 
D) 0.5% 
A) 6.0% 
B) 0.6% 
C) 0.8% 
D) 0.5%

Question 4

Solve the problem.
-Mark Stephens owns rental units with a replacement cost of $290,000 which are insured for $188,500 with an 80% coinsurance clause. There is a fire loss of $20,500. How much will the insurance company pay?

Accepted Answer

A) $13,325 
B) $19,988 
C) $20,500 
D) $16,656 
A) $13,325 
B) $19,988 
C) $20,500 
D) $16,656

Question 5

Find the assessed value for the property.
-Fair market value: $159,000
Rate of assessment: 40%

Accepted Answer

A) $63,600 
B) $95,400 
C) $31,800 
D) $636,000 
A) $63,600 
B) $95,400 
C) $31,800 
D) $636,000

Question 6

Find the amount of taxable income and the tax owed for the following people. The letter following the name indicates the marital status and all married people are filing jointly. Use $4050 for each personal exemption; $6300 as the standard deduction for single taxpayers, $12,600 for married taxpayers filing jointly, and $9300 for head of household and the following tax rate schedule.  
-

Accepted Answer

A) $58,125; $9,655.00 
B) $59,275; $9,973.75 
C) $60,160; $10,070.00 
D) $56,275; $8,366.25 
A) $58,125; $9,655.00 
B) $59,275; $9,973.75 
C) $60,160; $10,070.00 
D) $56,275; $8,366.25

Question 7

Find the tax refund or tax due for the following people. The letter following the name indicates the marital status. Assume a 52-week year and that all married people are filing jointly. Use $4050 for each personal deduction, a standard deduction of $6300 for single taxpayers, $12,600 for married taxpayers filing jointly, and $9300 for head of household and the tax rate schedule.  
-

Accepted Answer

A) $402.35 refund 
B) $5,590.35 due 
C) $5,590.35 refund 
D) $402.35 due 
A) $402.35 refund 
B) $5,590.35 due 
C) $5,590.35 refund 
D) $402.35 due

Question 8

Provide an appropriate response.
-Describe three factors that determine the premium charged for fire insurance.

Accepted Answer

The premium charged for fire insurance i

Question 9

Find the indicated premium. Round to the nearest cent.  
-Find the total premium paid over 30 years for a whole life policy with a face value of $20,000. Assume the policy is taken out by a 25-year-old woman.

Accepted Answer

A) $3,036.00 
B) $3,066.00 
C) $2,442.00 
D) $2,088.00 
A) $3,036.00 
B) $3,066.00 
C) $2,442.00 
D) $2,088.00

Question 10

Find the annual premium in territory 1.  
-Operator age: 59 Comprehensive/Collision Age Group: 1
Driver's ed: yes
Symbol: 7
Liability: 100/300
Property: $50,000
Uninsured motorist: yes

Accepted Answer

A) $674.00 
B) $608.00 
C) $1179.50 
D) $1044.70 
A) $674.00 
B) $608.00 
C) $1179.50 
D) $1044.70

Question 11

Find the assessed value for the property.
-Fair market value: $2,144,000
Rate of assessment: 80%

Accepted Answer

A) $17,152,000 
B) $428,800 
C) $857,600 
D) $1,715,200 
A) $17,152,000 
B) $428,800 
C) $857,600 
D) $1,715,200

Question 12

Find the amount paid by each of the multiple carriers.
-The Dixie Beer Company had an insured fire loss of $61,000. It had insurance coverage as follows: Company A, $500,000; Company B, $200,000; and Company C, $100,000. Find the amount paid by each carrier assuming that the coinsurance requirement had been met.

Accepted Answer

A) $35,075, $16,775, $41,175 
B) $41,175, $12,200, $7,625 
C) $38,125, $15,250, $7,625 
D) $36,600, $15,250, $9,150 
A) $35,075, $16,775, $41,175 
B) $41,175, $12,200, $7,625 
C) $38,125, $15,250, $7,625 
D) $36,600, $15,250, $9,150

Question 13

Provide an appropriate response.
-List four possible tax deductions, and explain the effect that a tax deduction has on taxable income and on income tax due.

Accepted Answer

1. Charitable contributions: Donations t

Question 14

Find the indicated premium. Round to the nearest cent.  
-Find the annual premium. Face Value: $45,000
Age of Insured: 50
Sex of Insured: M
Type of Policy: Universal life

Accepted Answer

A) $1,466.55 
B) $965.70 
C) $477.90 
D) $1,180.35 
A) $1,466.55 
B) $965.70 
C) $477.90 
D) $1,180.35

Question 15

Solve the problem.
-A taxpayer's property has a fair market value of $85,000. The rate of assessment in the area is 35%. The tax rate is $5.35 per $100 of assessed valuation. Find the property tax.

Accepted Answer

A) $1,591.63 
B) $4,547.50 
C) $454,750.00 
D) $159,162.50 
A) $1,591.63 
B) $4,547.50 
C) $454,750.00 
D) $159,162.50

Question 16

Find the tax refund or tax due for the following people. The letter following the name indicates the marital status. Assume a 52-week year and that all married people are filing jointly. Use $4050 for each personal deduction, a standard deduction of $6300 for single taxpayers, $12,600 for married taxpayers filing jointly, and $9300 for head of household and the tax rate schedule.  
-

Accepted Answer

A) $2,662.22 due 
B) $685.96 due 
C) $2,662.22 refund 
D) $685.96 refund 
A) $2,662.22 due 
B) $685.96 due 
C) $2,662.22 refund 
D) $685.96 refund

Question 17

Find the amount paid by each of the multiple carriers.
-The Robins Furniture Company had an insured fire loss of $191,000. It had insurance coverage as follows: Company A, $475,000; Company B, $325,000; and Company C, $175,000. Find the amount paid by each carrier assuming that the coinsurance requirement had been met.

Accepted Answer

A) $93,051.28, $63,666.67, $34,282.05 
B) $85,705.13, $61,217.95, $44,076.92 
C) $88,153.85, $58,769.23, $44,076.92 
D) $97,948.72, $61,217.95, $31,833.33 
A) $93,051.28, $63,666.67, $34,282.05 
B) $85,705.13, $61,217.95, $44,076.92 
C) $88,153.85, $58,769.23, $44,076.92 
D) $97,948.72, $61,217.95, $31,833.33

Question 18

Find the amount paid by each of the multiple carriers.
-The Robinson Company had an insured fire loss of $708,000. It had insurance coverage as follows: Company A, $725,000; Company B, $500,000; and Company C, $200,000. Find the amount paid by
Each carrier assuming that the coinsurance requirement had been met.

Accepted Answer

A) $364,350.88, $252,561.40, $91,087.72 
B) $358,140.35, $244,280.70, $105,578.95 
C) $362,280.70, $258,771.93, $86,947.37 
D) $360,210.53, $248,421.05, $99,368.42 
A) $364,350.88, $252,561.40, $91,087.72 
B) $358,140.35, $244,280.70, $105,578.95 
C) $362,280.70, $258,771.93, $86,947.37 
D) $360,210.53, $248,421.05, $99,368.42

Question 19

Find the amount paid by each of the multiple carriers.
-A building with a replacement cost of $1,100,000 has fire damages of $360,000. The insurance coverage is split between Company A ($500,000)and Company B ($300,000). Find (a)the amount of the loss covered and (b)amount paid by each company. (Note that the coinsurance requirement has not been met.)

Accepted Answer

A) (a)$327,272.73$204,545.45
(b)Company A: $204,545.45
Company B: $122,727.27 
B) (a $360,000
(b)Company A: $180,000.00
Company B: $180,000.00 
C) (a)$327,272.73
(b)Company A: $163,636.36
Company B: $163,636.36 
D) (a)$360,000
(b)Company A: $225,000.00
Company B: $135,000.00 
A) (a)$327,272.73$204,545.45
(b)Company A: $204,545.45
Company B: $122,727.27 
B) (a $360,000
(b)Company A: $180,000.00
Company B: $180,000.00 
C) (a)$327,272.73
(b)Company A: $163,636.36
Company B: $163,636.36 
D) (a)$360,000
(b)Company A: $225,000.00
Company B: $135,000.00

Question 20

Provide an appropriate response.
-Describe the coinsurance clause and how it works.

Accepted Answer

The coinsurance clause is a provision in

Find the indicated tax rate. -

Find the annual insurance premium. -A person's youthful-operator factor is 2.35. The annual premium for liability coverage is $266.70 for bodily injury and $157.80 for property damage.

Find the tax rate for the area. Round to the nearest tenth of a percent. -Total tax needed: $321,000 Total assessed value: $53,103,000

Solve the problem. -Mark Stephens owns rental units with a replacement cost of $290,000 which are insured for $188,500 with an 80% coinsurance clause. There is a fire loss of $20,500. How much will the insurance company pay?

Find the assessed value for the property. -Fair market value: $159,000 Rate of assessment: 40%

Provide an appropriate response. -Describe three factors that determine the premium charged for fire insurance.

Find the indicated premium. Round to the nearest cent. -Find the total premium paid over 30 years for a whole life policy with a face value of $20,000. Assume the policy is taken out by a 25-year-old woman.

Find the annual premium in territory 1. -Operator age: 59 Comprehensive/Collision Age Group: 1 Driver's ed: yes Symbol: 7 Liability: 100/300 Property: $50,000 Uninsured motorist: yes

Find the assessed value for the property. -Fair market value: $2,144,000 Rate of assessment: 80%

Provide an appropriate response. -List four possible tax deductions, and explain the effect that a tax deduction has on taxable income and on income tax due.

Find the indicated premium. Round to the nearest cent. -Find the annual premium. Face Value: $45,000 Age of Insured: 50 Sex of Insured: M Type of Policy: Universal life

Solve the problem. -A taxpayer's property has a fair market value of $85,000. The rate of assessment in the area is 35%. The tax rate is $5.35 per $100 of assessed valuation. Find the property tax.

Provide an appropriate response. -Describe the coinsurance clause and how it works.

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Exam 13: Taxes and Insurance