Question 1

Given the following information and using the tables in the handbook, the total annual premium is: 
Class 17 operator Compulsory 10/20/5 Symbol 5
Age 4
Optional 100/300 bodily Collision $200 deductible Comprehensive $200 deductible

Accepted Answer

A) $615.00 
B) $622.00 
C) $578.00 
D) $752.00 
E) None of these

Question 2

Match the following terms with their definitions.
-Premium

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

Question 3

Joan Raft had taken out an $80,000 fire insurance policy for her new shop at a rate of $.81 per $100. Seven months later, Joan canceled the policy and decided to move the shop to a new location. What refund did she receive?

Accepted Answer

The answer of Joan Raft had taken out an $80,000...

Question 4

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?

Accepted Answer

The answer of Jim Leary insured his bookstore with a...

Question 5

Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \
\hline \$ 76,000 & 25 \mathrm { M } & 5 \text {-Year Term } & \text { A } \
\hline
\end{array}$$

Accepted Answer

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

Question 6

Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \
\hline \$ 100,000 & 30 \mathrm { M } & 20 - P \text { ay Life } & \text { A } \
\hline
\end{array}$$

Accepted Answer

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

Question 7

Calculate the cost of the premium:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Rating of Area } & \text { Class } & \text { Building } & \text { Contents } \
\hline 2 & \text { A } & \$ 80,000 & \$ 50,000 \
\hline
\end{array}$$

Accepted Answer

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

Question 8

Abby Small, age 40, wants to take out a $300,000 term insurance policy. What is her annual premium? At the end of five years, what is the cash value?

Accepted Answer

The answer of Abby Small, age 40, wants to take...

Question 9

Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \
\hline 26,000 & 37 \mathrm {~F} & \text { Straight Life } & \text { A } \
\hline
\end{array}$$

Accepted Answer

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

Question 10

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?

Accepted Answer

The answer of Joe Rossen opened a pizza shop. He...

Question 11

Which one of the following builds up no cash value?

Accepted Answer

A) Universal life 
B) Straight life 
C) Term 
D) 20-payment life 
E) None of these

Question 12

A 20-year endowment does not build up any cash value by the end of year 5.

Accepted Answer

A) True 
 B)False

Question 13

Match the following terms with their definitions.
-No-fault

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

Question 14

Lowering deductibles for collision will result in increased premiums.

Accepted Answer

A) True 
 B)False

Question 15

Calculate the amount the insurance company will pay:
 $$\begin{array} { | l | l | l | l | l | } 
\hline\begin{array} { l } 
\text { Value of } \
\text { Property }
\end{array} & \begin{array} { l } 
\text { Amount of } \
\text { Insurance }
\end{array} & \text { Policy } & \text { Actual Fire Loss } & \begin{array} { l } 
\text { Amount Insurance } \
\text { Company will pay }
\end{array} \
\hline \$ 70,000 & \$ 40,000 & 80 \% \text { Co-Ins } & \$ 11,200 & \text { A } \
\$ 90,000 & \$ 50,000 & 80 \% \text { Co-Ins } & \$ 36,000 & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the amount the insurance company will...

Question 16

Match the following terms with their definitions.
-Indemnity

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

Question 17

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?

Accepted Answer

The answer of John Davis's store is worth $400,000 and...

Question 18

Using the tables in the handbook, calculate Joe Wheel's Auto premium:
Class 17 operator 
Compulsory 10/20/5
Symbol 5
Age 4
Optional 100/300 bodily
Collision $300 deductible
Comprehensive $300 deductible
Damage to someone else's property 25M
Towing

Accepted Answer

The answer of Using the tables in the handbook, calculate...

Question 19

Match the following terms with their definitions.
-Endowment insurance

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

Question 20

Premiums for straight-life insurance are higher than premiums for term insurance.

Accepted Answer

A) True 
 B)False

Exam 20: Life, Fire, and Auto Insurance

Given the following information and using the tables in the handbook, the total annual premium is: Class 17 operator Compulsory 10/20/5 Symbol 5 Age 4 Optional 100/300 bodily Collision $200 deductible Comprehensive $200 deductible

Match the following terms with their definitions. -Premium

Joan Raft had taken out an $80,000 fire insurance policy for her new shop at a rate of $.81 per $100. Seven months later, Joan canceled the policy and decided to move the shop to a new location. What refund did she receive?

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?

Find the following: $\begin{array} { | l | l | l | l | } \hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \\\hline \$ 76,000 & 25 \mathrm { M } & 5 \text {-Year Term } & \text { A } \\\hline\end{array}$

Find the following: $\begin{array} { | l | l | l | l | } \hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \\\hline \$ 100,000 & 30 \mathrm { M } & 20 - P \text { ay Life } & \text { A } \\\hline\end{array}$

Calculate the cost of the premium: $\begin{array} { | l | l | l | l | } \hline \text { Rating of Area } & \text { Class } & \text { Building } & \text { Contents } \\\hline 2 & \text { A } & \$ 80,000 & \$ 50,000 \\\hline\end{array}$

Abby Small, age 40, wants to take out a $300,000 term insurance policy. What is her annual premium? At the end of five years, what is the cash value?

Find the following: $\begin{array} { | l | l | l | l | } \hline \text { Face Value } & \text { Age and Sex of Insured } & \text { Type of Insurance } & \text { Annual Premium } \\\hline 26,000 & 37 \mathrm {~F} & \text { Straight Life } & \text { A } \\\hline\end{array}$

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?

Which one of the following builds up no cash value?

A 20-year endowment does not build up any cash value by the end of year 5.

Match the following terms with their definitions. -No-fault

Lowering deductibles for collision will result in increased premiums.

Match the following terms with their definitions. -Indemnity

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?

Using the tables in the handbook, calculate Joe Wheel's Auto premium: Class 17 operator Compulsory 10/20/5 Symbol 5 Age 4 Optional 100/300 bodily Collision $300 deductible Comprehensive $300 deductible Damage to someone else's property 25M Towing

Match the following terms with their definitions. -Endowment insurance

Premiums for straight-life insurance are higher than premiums for term insurance.