Math

2 ) What would be the total fire insurance premium for Best Seconds if their $837,500 building belongs in structural classification D? The contents are worth $421,300 and they received an area rating of 2. (The rates per $100 are found in the book)

	a. $7,255.49
	b. $7,680.72
	c. $5,126.34
	d. $6,587.14

4) The Wings and Things owns a building valued at $2,154,000 but has decided to insure it for only $1,542,000. Their insurance policy stipulates coinsurance of 80%. If a fire were to cause $685,000 in damage, how much would the insurance company pay on the claim? (Round your answer to the nearest cent)

	a. $503,000.00
	b. $612,970.06
	c. $635,403.86
	d. $667,329.21

5) At age 29, Wendi purchased a 20-year endowment insurance policy with face value of $230,000. She is now 32 and wants to cancel her policy. Determine the amount of reduced paid-up insurance to which she is entitled.

	a. $19,879
	b. $17,338
	c. $22,310
	d. $15,070

7) Alana wishes to obtain auto insurance. She wants 100/300/100 liability coverage, $250 deductible collision and full coverage comprehensive. She lives in territory 2 and has been assigned to driver class 2 with a rating factor of 1.05. Based on Table 19-6 and Table 19-7 from your text, what would be her total premium, if her 3-year old car were in model class L? (Round your answer to the nearest cent)

	a. $389.00
	b. $383.25
	c. $355.00
	d. $305.45

8) Sunshine was transferred to another city and must sell her home. She renewed her homeowner's policy effective 11 months ago, with an annual premium of $902.00. How much of a refund will she receive based on Table 19-5 in your text?

	a. $87.41
	b. $45.10
	c. $91.74
	d. $39.97

9) At age 22, Valencia has decided to purchase a 5-year term insurance policy with face value of $165,000. Use the table in the book to calculate her semiannual premium.

	a. $192.27
	b. $351.90
	c. $190.48
	d. $366.30

10) The insurance carrier used by Pinnacle Computer Systems specifies 65% coinsurance. The company recently incurred $420,000 in damages from flooding. The building was valued at $625,000, but was only insured for $320,000. What amount will be paid by the insurance company for the loss? (Round your answer to the nearest cent)

	a. $411,240.59
	b. $626,000.00
	c. $292,400.00
	d. $330,830.77

11) Pete's wife earns $37,400 per year. If Pete dies, his family would require $56,700 to cover their living expenses. Some of the yearly expenses would be offset by $2,400 from stock dividends, but this is still not enough. How much insurance should Pete have to cover the shortfall, given a 13.1% prevailing interest rate? (Round to nearest $1,000)

	a. $129,000
	b. $159,000
	c. $147,000
	d. $156,000

12) Find the median of the following numbers: 458, 791, 344, 370, 641, 194, 974

	a. 65.4
	b. 538.9
	c. 505.5
	d. 458.0

13) Based on the information in Marcus's auto insurance application, his agent has assigned Marcus to driver class 1 and placed his 10-year old car in model class J. The state where he lives requires minimum liability coverage of 15/30/10, and he also wants $250 deductible collision and $100 deductible comprehensive. Using Table 19-6 and Table 19-7 from your text, find his total premium, if his state is in territory 3, and he has received a rating factor of 2.1. (Round your answer to the nearest cent)

	a. $491.40
	b. $360.00
	c. $300.00
	d. $630.00

14)Using 5 classes of width 150 starting at 100, construct a frequency distribution for the following numbers:

436, 786, 355, 211, 117, 821, 619, 679, 697, 644, 168, 145, 655, 176

Use the frequency counts for all 5 classes, starting with class 100 to 249, as your answer.

	a. 4, 0, 1, 5, 2
	b. 7, 2, 1, 6, 2
	c. 7, 3, 2, 5
	d. 5, 1, 1, 5, 2

15) Using 6 classes of width 15 starting at 30, construct a frequency distribution for the following numbers: 64, 36, 47, 70, 82, 77, 104, 88, 101, 90, 116. What is the frequency for class 4, 75 to 89?

	a. 2
	b. 3
	c. 1
	d. 4

16) Scott was involved in an auto accident in which he was at fault. His own car sustained $2,380 damages and the other vehicle cost $2,748 to repair. Scott was not injured, but the driver of the other car required medical treatment costing $32,180. Scott's policy includes 10/20/5 liability, $250 deductible collision, and full coverage comprehensive. How much of the damages must the insurance company pay?

	a. $14,878
	b. $32,180
	c. $22,430
	d. $37,308

17) Donna purchased a 20-payment life insurance policy having a face value of $350,000 when she was 23 years old. What is the cash value of her policy if she is now 26 years old?

	a. $20,200
	b. $10,820
	c. $10,150
	d. $10,940

18) What would be the total fire insurance premium for Best Hardware if their $625,000 building belongs in structural classification B? The contents are worth $850,250 and they received an area rating of 4. The rates per $100 are found in Table 19-4 from your text. (Round your answer to the nearest cent)

	a. $11,807.08
	b. $10,456.68
	c. $14,525.00
	d. $17,123.58

21) Maya was involved in an auto accident in which she was at fault. Her own car sustained $1,926 damages and the other vehicle cost $1,126 to repair. Maya was not injured, but the driver of the other car required medical treatment costing $3,448 and a passenger's injuries totaled $3,946. Maya's policy includes 10/20/5 liability, $250 deductible collision and full coverage comprehensive. How much of the damages must Maya pay?

	a. $260
	b. $250
	c. $385
	d. $955

24) Halbrooke Warehouse Inc. recently incurred $263,000 in damages from an earthquake. Fireman's is responsible for $47,500 out of a total of $475,000 coverage provided by multiple carriers. If all coinsurance requirements have been met, how much of the loss will be paid by Fireman's?

	a. $263,000
	b. $47,500
	c. $236,700
	d. $26,300