Brian Murray, age 39, an actor, expects his income to decline in future years. He decided to take out a 20-year payment life policy with a $400,000 coverage. What will be Brian's annual premium? If he decides to stop paying premiums after 15 years, what will be his cash value?
Jill Smith received from State Farm Insurance an automobile rate quote for her Saturn. Auto Liability, 100/300/100 premium, $381.04 (class 18); collision with a $200 deductible premium, $261.36; and comprehensive with a $200 deductible premium, $49.72. Collision and comprehensive are in age group 2, symbol 8. The total premium is $692.12. Using the same coverage and tables in your text, what would be the difference in the annual premiums? Assume no compulsory insurance for this situation.
Assume your home has a replacement value of $164,000 with an 80% coinsurance clause. You are carrying $125,000 insurance. A fire damages your property in the amount of $18,500. How much of the loss will be covered? How much must you pay out of your pocket? Round the percent to the nearest hundredth in the calculation. Round the final answer to the nearest dollar.
The National Underwriter/Life & Health Financial Services discussed buying term life insurance online. Online quotes from insurance firms may vary as much as 160%, which could cost consumers hundreds of dollars each year. Based on a $100,000 policy for a 38-year-old-male, annual premiums ranged from $194.00 to $371.52 a year. Using your text, what would be the annual premium?
Time ran an article, "Will Your Insurance Policy Pay the Entire Cost to Rebuild Your Home? Better Check Now." Replacement costs vary by location, so it's important to make sure you have correctly estimated what it will cost to replace your home in the event of a fire. Replacement costs for the same two-story, 2,400 square feet, two-car-garage frame home are listed below:
San Francisco
$250,500
New York
245,800
Chicago
200,200
Boston
195,500
If the coinsurance clause in your policy is 80%, how much insurance must you carry in each location to be fully covered in the event of a loss?
Black Enterprise ran a story on auto insurance premiums and the various discounts that may be available on insurance policies. Discounts may be given for carpoolers, driver's training or defensive driving courses, good drivers, good students, mature drivers, and multicar owners. Bill Smith of Los Angeles, California, has insurance on his 1997 Buick Century. He has 500/1,000; his class is 17, age group 4, and symbol 3 for optional collision and comprehensive; and he has 100M for damage to someone else's property. Bill's son is a B+ student, and Bill receives a 10% discount for his son. Also there have been no accidents or moving violations in the last 5 years. Good drivers in California get a mandatory 20% reduction. What is the amount of Bill Smith's annual insurance premium? Assume no compulsory insurance for this situation.
Rates were given for term life insurance for smokers and nonsmokers. The rate for 39-year-old male smoker was $2.25 per $1,000; the rate for the same age nonsmoker was $1.54 per $1,000. What will be the cost of a $200,000 term life insurance policy for a smoker and for a nonsmoker? How much does the nonsmoker save?
The Los Angeles Times reported a change in the city of La Habra's fire-protection rating. This year's assessment for the La Habra Fire Department changed from a 2 rating to a 3. Marcia Nix owns a $225,000 building and has $35,000 in contents. The building has a B classification. What will be the increase in premiums for the building?
Tina Grey bought a new Honda Civic and insured it with only 10/20/5 compulsory insurance. Driving up to her ski chalet one snowy evening, Tina hit a parker van and injured the couple inside. Tina's car had damage of $4,200, and the van she struck had damage of $5,500. After a lengthy court suit, the injured persons were awarded personal injury judgments of $16,000 and $7,900 respectively. What will the insurance company pay for this accident, and what is Tina's responsibility?
The TIAA-CREF Life Insurance Company Annual Life Insurance Review listed the cost of term life insurance. The cost of a $50,000 policy on a 39-year-old male would be $110.75 a year, and a 39-year-old female would pay $99.50 a year. Compare the premium of TIAA-CREF with the premium in your text. (a) What is the difference for a male? (b) What is the difference for a female?
