Question 1

Provide an appropriate response.
-Explain in your own words multiple carrier insurance. Give two reasons for dividing insurance among multiple carriers.

Accepted Answer

Multiple carrier insurance refers to the

Question 2

Find the indicated premium. Round to the nearest cent.  
-Find the annual premium.
Face Value: $45,000
Age of Insured: 25
Sex of Insured: F
Type of Policy: Whole life

Accepted Answer

A) $102.60 
B) $116.10 
C) $183.15 
D) $227.70 
A) $102.60 
B) $116.10 
C) $183.15 
D) $227.70

Question 3

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) $43,444; $6,144.10 
B) $46,287; $7,721.75 
C) $43,444; $6,632.25 
D) $47,494; $7,998.50 
A) $43,444; $6,144.10 
B) $46,287; $7,721.75 
C) $43,444; $6,632.25 
D) $47,494; $7,998.50

Question 4

Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.  
-Area Rating: 1
Building Classification: A
Building Value: $182,000
Contents Value: $38,000

Accepted Answer

A) $57.66 
B) $677.40 
C) $576.60 
D) $713.20 
A) $57.66 
B) $677.40 
C) $576.60 
D) $713.20

Question 5

Find the annual premium in territory 1.  
-Operator age: 31
Driver's ed: yes
Liability: 25/50
Property: $25,000
Comprehensive/Collision Age Group: 3
Uninsured motorist: yes
Symbol: 7

Accepted Answer

A) $584.00 
B) $518.00 
C) $899.00 
D) $1015.00 
A) $584.00 
B) $518.00 
C) $899.00 
D) $1015.00

Question 6

Solve the problem.
-Pelican Lumber Company owns a building with a replacement cost of $738,000 which is insured for $531,360 with an 80% coinsurance clause. The building has a fire loss of $20,500. How much will the insurance company pay?

Accepted Answer

A) $20,500 
B) $18,450 
C) $14,760 
D) $22,140 
A) $20,500 
B) $18,450 
C) $14,760 
D) $22,140

Question 7

Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.
-Insurance loss: $32,000
Company A coverage: $160,000
Company B coverage: $40,000

Accepted Answer

A) A pays: $25,600
B pays: $6,400 
B) A pays: $16,000
B pays: $16,000 
C) A pays: $24,000
B pays: $8,000 
D) A pays: $32,000
B pays: $0 
A) A pays: $25,600
B pays: $6,400 
B) A pays: $16,000
B pays: $16,000 
C) A pays: $24,000
B pays: $8,000 
D) A pays: $32,000
B pays: $0

Question 8

Solve the problem.
-The Corner Cafe has a replacement cost of $232,000 and is insured for $174,000 with an 80% coinsurance clause. The building has a fire loss of $24,500. How much will the insurance company
Pay?

Accepted Answer

A) $18,375 
B) $24,500 
C) $27,563 
D) $22,969 
A) $18,375 
B) $24,500 
C) $27,563 
D) $22,969

Question 9

Find the tax rate for the area. Round to the nearest tenth of a percent.
-Total tax needed: $948,000
Total assessed value: $148,720,000

Accepted Answer

A) 0.6% 
B) 0.8% 
C) 6.00% 
D) 0.5% 
A) 0.6% 
B) 0.8% 
C) 6.00% 
D) 0.5%

Question 10

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) $16,646.90 due 
B) $335.55 due 
C) $335.55 refund 
D) $16,646.90 refund 
A) $16,646.90 due 
B) $335.55 due 
C) $335.55 refund 
D) $16,646.90 refund

Question 11

Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to the nearest dollar.
-Replacement Cost of Building: $982,000 Face Value of Policy: $589,200
Amount of Loss: $197,000

Accepted Answer

A) $118,200.00 
B) $73,875.00 
C) $147,750.00 
D) $197,000.00 
A) $118,200.00 
B) $73,875.00 
C) $147,750.00 
D) $197,000.00

Question 12

Find the adjusted gross income.
-Curt had income from these sources: $19,794 from his job, $61 in interest, and $248 in dividends. He paid $3,189 in alimony.

Accepted Answer

A) $20,103 
B) $16,914 
C) $16,853 
D) $23,292 
A) $20,103 
B) $16,914 
C) $16,853 
D) $23,292

Question 13

Solve the problem. Use the fire insurance rate table if needed. Rates are for each $100 of insurance. Round to the nearest dollar.  
-Laura Lee Candies owns a class A building with a replacement cost of $154,000. Contents are valued at $71,000. The area is rated 3. Find the fire insurance annual premium.

Accepted Answer

A) $774 
B) $90 
C) $896 
D) $971 
A) $774 
B) $90 
C) $896 
D) $971

Question 14

Solve the problem.
-A taxpayer's property has a market value of $117,000. The rate of assessment in the area is 30%. The tax rate is $7.55 per $100 of assessed valuation. Find the property tax.

Accepted Answer

A) $265,005.00 
B) $883,350.00 
C) $8,833.50 
D) $2,650.05 
A) $265,005.00 
B) $883,350.00 
C) $8,833.50 
D) $2,650.05

Question 15

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) $1,384.17 refund 
B) $11,424.23 refund 
C) $1,384.17 due 
D) $11,424.23 due 
A) $1,384.17 refund 
B) $11,424.23 refund 
C) $1,384.17 due 
D) $11,424.23 due

Provide an appropriate response. -Explain in your own words multiple carrier insurance. Give two reasons for dividing insurance among multiple carriers.

Find the indicated premium. Round to the nearest cent. -Find the annual premium. Face Value: $45,000 Age of Insured: 25 Sex of Insured: F Type of Policy: Whole life

Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance. -Area Rating: 1 Building Classification: A Building Value: $182,000 Contents Value: $38,000

Find the annual premium in territory 1. -Operator age: 31 Driver's ed: yes Liability: 25/50 Property: $25,000 Comprehensive/Collision Age Group: 3 Uninsured motorist: yes Symbol: 7

Solve the problem. -Pelican Lumber Company owns a building with a replacement cost of $738,000 which is insured for $531,360 with an 80% coinsurance clause. The building has a fire loss of $20,500. How much will the insurance company pay?

Find the amount paid by each insurance company. Assume that any coinsurance requirement is met. -Insurance loss: $32,000 Company A coverage: $160,000 Company B coverage: $40,000

Solve the problem. -The Corner Cafe has a replacement cost of $232,000 and is insured for $174,000 with an 80% coinsurance clause. The building has a fire loss of $24,500. How much will the insurance company Pay?

Find the tax rate for the area. Round to the nearest tenth of a percent. -Total tax needed: $948,000 Total assessed value: $148,720,000

Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to the nearest dollar. -Replacement Cost of Building: $982,000 Face Value of Policy: $589,200 Amount of Loss: $197,000

Find the adjusted gross income. -Curt had income from these sources: $19,794 from his job, $61 in interest, and $248 in dividends. He paid $3,189 in alimony.

Solve the problem. -A taxpayer's property has a market value of $117,000. The rate of assessment in the area is 30%. The tax rate is $7.55 per $100 of assessed valuation. Find the property tax.

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Simple Interest

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Depreciation

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Exam 13: Taxes and Insurance