Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Alvin Hersey, age 44, purchased a $90,000, 5-year term life insurance policy. Calculate his annual premium. After three years, what is his cash value?
- Gracie Lantz, age 44, purchased an $80,000 straight life policy. Calculate her annual premium.
- If after 15 years Gracie (Problem No. 2) wants to surrender her policy, what options and what amounts are available to her?
- Calculate the total annual premium of a building that has an area rating of 1 with a building classification A. The value of the building is $90,000, with contents valued at $40,000.
- If the insured in Problem No. 4 cancels at the end of month 8, what is the cost of the premium and the refund?
- If in Problem No. 5 the insurance company cancels at the end of month 8, what is the cost of the premium and the refund?
- Ring insures a building for $160,000 with 80% coinsurance cause. The replacement value is $400,000. Assume a loss of $90,000 from fire. What will the insurance company pay?
- Calculate the annual premium of Phil Smool who lives in territory 5 and is a classified driver18, has a car with age 5 and symbol 2. His state has compulsory insurance and Phil wants to add the following options:
1. Bodily injury, 500/1000
2. Damage to someone else's property, 25M
3. Collision, 100 deductible
4. Comprehensive, 300 deductible
5. Towing
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