Question 1

Driver Buckley lives in a state having no-fault auto insurance. Goodroads Insurance Company insures Buckley for no-fault insurance only. Buckley's car is struck by a truck while waiting at a stop light. Medical expenses for Buckley and passenger are $547. Repairs to Buckley's car cost $320. Six months later, a car backs out of an alley and hits Buckley's car, causing medical expenses of $950 for Buckley and passenger and $1,249 for repairs to Buckley's car. Compute the amount Goodroads Insurance Company pays for Buckley's involvement in accidents this year.​

Accepted Answer

$1,497

Question 2

Driver Martin is given a 10% discount on auto insurance as a low-risk driver. The regular premium would be $1,800 for a year. If Martin qualifies for the discount every year for 5 years, compute the amount Martin will save on insurance premiums.​

Accepted Answer

$900

Question 3

Drivers Harris and Stein live in a state having no-fault auto insurance. Stein causes an accident by hitting Harris's car. Stein is not hurt. Harris spends three days in the hospital at a cost of $5,300. Compute the amount each driver's insurance company pays toward medical expenses.​

Accepted Answer

Harris's company: $5,300; Stein's company: $0

Question 4

Hartford Corporation insured a building for $400,000 for one year at a premium rate of $6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15% of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.​

Accepted Answer

The answer of Hartford Corporation insured a building for $400,000...

Question 5

Allied Industries, Inc. insured an office building for $390,000 for one year at a premium rate of $7.10 per thousand. At the end of nine months, the insurance company canceled the policy. Compute the amount of the refund received by Allied Industries, Inc.

Accepted Answer

The answer of Allied Industries, Inc. insured an office building...

Question 6

Fuller Insurance Company insured Driver Hudson at an annual premium of $800. After 2 months, Fuller Insurance Company canceled the policy. Compute the amount of the refund to Hudson.​

Accepted Answer

The answer of Fuller Insurance Company insured Driver Hudson at...

Question 7

Cameron Insurance Company insured Driver Gifford at an annual premium of $740. After 6 months, Gifford sold the car and canceled the insurance. Cameron Insurance Company refunded the remaining half of the premium at the short rate based on a penalty of 15%. Compute the amount of the short-rate refund.

Accepted Answer

The answer of Cameron Insurance Company insured Driver Gifford at...

Question 8

A homeowner insured a house for $150,000 for one year at a premium rate of $5.00 per thousand. The homeowner canceled the policy during the year. The insurance company has a penalty of 15% for short-rate refunds. Compute the amount of the penalty.​

Accepted Answer

The answer of A homeowner insured a house for $150,000...

Question 9

Safeco Insurance Company insured Driver Fitzwater at an annual premium of $3,300. After one month, Fitzwater sold the car and canceled the insurance. Safeco Insurance Company refunded the remaining 11 months' premium at the short rate based on a 15% penalty. Compute the amount that the one month of insurance cost Fitzwater.

Accepted Answer

The answer of Safeco Insurance Company insured Driver Fitzwater at...

Question 10

An insured carries all three classifications of insurance, with a deductible of $500 for collision. The insured paid an annual premium of $1,720. The insured backed into a car in a parking lot, causing $580 damage to the car of the insured and $1,770 damage to the other car. Compute the amount that the insurance company made from the insured this year.​

Accepted Answer

The answer of An insured carries all three classifications of...

Question 11

Manley Insurance Company does business in a state having no-fault insurance. An insured carries all classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,770. The insured struck a telephone pole causing medical expenses of $2,340 for his passenger, $620 damage to his car, and $1,840 damage to property. How much more did Manley Insurance Company pay out on behalf of the insured than it received as his annual premium?

Accepted Answer

The answer of Manley Insurance Company does business in a...

Question 12

​Thomas Insurance Company does business in a state having no-fault insurance. Driver Jones is insured by Thomas Insurance Company and carries only no-fault insurance. Jones skids on a curve and hits a fruit stand. Medical expenses for Jones are $720 and are $630 for the only passenger. Repairs to the car cost $1,300. Repairs for the fruit stand cost $420. Compute the amount Jones and Thomas Insurance Company each had to pay toward repairs and medical expenses.

Accepted Answer

The answer of ​Thomas Insurance Company does business in a...

Question 13

Drivers Miller and Taylor live in a state having no-fault auto insurance. Taylor causes an accident by hitting Miller's bike. Taylor is not hurt. Miller spends five days in the hospital at a cost of $6,400. Compute the amount each driver's insurance company pays toward medical expenses.

Accepted Answer

The answer of Drivers Miller and Taylor live in a...

Question 14

Driver Cooper has a poor driving record and pays double the usual premium as a high-risk driver. The regular premium would be $510 for a year. If Cooper must pay the high-risk premium every year for 5 years, how much more will Cooper pay for insurance premiums than a low-risk driver receiving a 10% discount over the same 5-year period?

Accepted Answer

The answer of Driver Cooper has a poor driving record...

Question 15

Universal Insurance Company does business in a state having no-fault insurance. An insured carries all three classifications of insurance, with a $500 deductible for collision. The insured paid an annual premium of $2,790. The insured fell asleep at the wheel and had medical expenses for himself of $1,280 and auto repair expenses of $800. Compute the amount that Universal Insurance Company premium was over the amount the insurance company paid in benefits.

Accepted Answer

The answer of Universal Insurance Company does business in a...

Question 16

Driver Blake, a low-risk driver, is insured by a company that gives a 5% discount for the first year, 10% the second year, 15% the third year, and 20% every year thereafter. Blake has qualified as a low-risk driver for the last 10 years. Compute the amount Blake saved in premiums if the regular premium is $2,000.

Accepted Answer

The answer of Driver Blake, a low-risk driver, is insured...

Question 17

John Christopher, a low-risk driver, is insured by a company that gives a 10% discount for the first year, 20% the second year, 25% the third year, and 30% every year thereafter. Christopher has qualified as a low-risk driver for the last 5 years. Compute the amount Christopher saved in premiums if the regular premium is $1,000.

Accepted Answer

The answer of John Christopher, a low-risk driver, is insured...

Question 18

Driver Sanders has a poor driving record and pays triple the regular premium. The regular premium would be $2,100 and covers Sanders for all three classifications of insurance with a $500 deductible for auto collision. During the year, Sanders sideswiped a row of parked cars. Repairs to the parked cars cost $1,870, $4,950, $2,340, and $378. Repairs to Sanders' car cost $490. Compute the amount the insurance company paid out in benefits over the amount it received in premium for this policy.

Accepted Answer

The answer of Driver Sanders has a poor driving record...

Question 19

​Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.

Accepted Answer

The answer of ​Garnet Corporation insured a building for $370,000...

Question 20

Brant Insurance Company insured Driver Moore at an annual premium of $1,000. After 3 months, Brant Insurance Company canceled the policy. Compute the amount of the refund to Moore.

Accepted Answer

The answer of Brant Insurance Company insured Driver Moore at...

Quiz 12: Insurance

Driver Martin is given a 10% discount on auto insurance as a low-risk driver. The regular premium would be $1,800 for a year. If Martin qualifies for the discount every year for 5 years, compute the amount Martin will save on insurance premiums.​

Drivers Harris and Stein live in a state having no-fault auto insurance. Stein causes an accident by hitting Harris's car. Stein is not hurt. Harris spends three days in the hospital at a cost of $5,300. Compute the amount each driver's insurance company pays toward medical expenses.​

Allied Industries, Inc. insured an office building for $390,000 for one year at a premium rate of $7.10 per thousand. At the end of nine months, the insurance company canceled the policy. Compute the amount of the refund received by Allied Industries, Inc.

Fuller Insurance Company insured Driver Hudson at an annual premium of $800. After 2 months, Fuller Insurance Company canceled the policy. Compute the amount of the refund to Hudson.​

A homeowner insured a house for $150,000 for one year at a premium rate of $5.00 per thousand. The homeowner canceled the policy during the year. The insurance company has a penalty of 15% for short-rate refunds. Compute the amount of the penalty.​

Drivers Miller and Taylor live in a state having no-fault auto insurance. Taylor causes an accident by hitting Miller's bike. Taylor is not hurt. Miller spends five days in the hospital at a cost of $6,400. Compute the amount each driver's insurance company pays toward medical expenses.

Brant Insurance Company insured Driver Moore at an annual premium of $1,000. After 3 months, Brant Insurance Company canceled the policy. Compute the amount of the refund to Moore.

Driver Martin is given a 10% discount on auto insurance as a low-risk driver. The regular premium would be $1,800 for a year. If Martin qualifies for the discount every year for 5 years, compute the amount Martin will save on insurance premiums.

Drivers Harris and Stein live in a state having no-fault auto insurance. Stein causes an accident by hitting Harris's car. Stein is not hurt. Harris spends three days in the hospital at a cost of $5,300. Compute the amount each driver's insurance company pays toward medical expenses.

Fuller Insurance Company insured Driver Hudson at an annual premium of $800. After 2 months, Fuller Insurance Company canceled the policy. Compute the amount of the refund to Hudson.

A homeowner insured a house for $150,000 for one year at a premium rate of $5.00 per thousand. The homeowner canceled the policy during the year. The insurance company has a penalty of 15% for short-rate refunds. Compute the amount of the penalty.