FIN 3440 Study Guide - Midterm Guide: Geico, Customer Retention, Usaa

63 views9 pages

ultramarinerat118

19 Sep 2017

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

An automobile insurance policy, or personal auto policy (pap) as it is commonly referred to today, consists of several types of insurance. Some are mandatory and some are optional, depending on state law. You can tailor the amount of coverage and the cost for each type of insurance, to fit your particular situation. The pap is actually one of the more complex insurance contracts because it provides coverage against different types of losses and circumstances. The types of losses covered include legal liability, injury to the insured or members of his/her family, and damage to or loss of the automobile. The pap is also designed for varied circumstances: to provide protection for the owner when someone else is operating his/her auto, or when the insured is driving someone else"s car. Chapter 22 (p. 113-140) and appendix b (p. 188-201) of your text should be read together, because.

Related Questions

Rob Worley of Richmond, Virginia, is a divorced 40-year-old loan officer at the Dominion Bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late December, he visits University Auto Mall and buys a new car for $28,000. To obtain insurance on the car, Rob calls his agent, Karen Cunningham, who represents Charter Insurance Company, and explains his auto insurance needs. Karen says sheâll investigate the various options for him. Three days later, Rob and Karen get together to review his coverage options. Karen offers several proposals, including various combinations of the following coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance.

Objectives â¢ Describe the key features, policy limits and persons insured of 5 important car insurance. â¢ Apply what you have learned on automobile insurance to real life saturation. Questions

1. Describe the key features of these insurance coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance. There are 5 types of insurance, each is worth 10 points. 50 points

2 Are there any limitations on these coverages? Explain. There are 5 types of insurance, each is worth 3 points.

3. Indicate the persons or property that would be protected under each type of coverage. There are 5 types of insurance, each is worth 3 points.

4. What kind of insurance coverages would you recommend that Rob purchase? Explain your recommendation.

ceruleancricket578

1. What would a renterâs insurance policy cover in case of a fire? (Points : 2)

Damages to your neighbor's personal property
Any damages to the building structure
Temporary living expenses, like hotel
Your monthly paycheck

Question 2.2. The insurance designed to help with nursing home or in-home care due to chronic illness is called: (Points : 2)

Medicare
Major medical
Comprehensive major medical
Nursing home care
Long-term care

Question 3.3. A liability suit could result when: (Points : 2)

Lightning strikes your home
Your son falls down the stairs of your home
Your automobile is stolen
Your dog bites the neighbor
Smoke from the fireplace fills your house

Question 4.4. What approach, would determine the amount of life insurance for your family to maintain its current lifestyle and funds after your death? (Points : 2)

Earnings multiple approach
Needs approach
Cash liquidity approach
Funds analysis approach

Question 5.5. The basic purpose of insurance is: (Points : 2)

Protect your health
Protect you from the risk of loss
Supplement your income
Help you from making bad decisions

Question 6.6. Basic health-care benefits cover: (Points : 2)

Hospital expenses only
Hospital and surgical expenses
Hospital, and surgical and physician expenses
There is no basic health-care insurance

Question 7.7. For auto insurance, property coverage pays for: (Points : 2)

Your legal responsibility to others for bodily injury
The cost of treating injuries, rehabilitation, lost wages, and funeral costs
Damage or theft of your car
All of the above

Question 8.8. Life insurance policy designates a primary person who is intended to be provided for. Who is this person? (Points : 2)

beneficiary
contingent beneficiary
policyholder
insured

Question 9.9. Which statement accurately describes term life insurance? (Points : 2)

Provides no investment features
Costs more than other types of life insurance
Has premiums that decrease over one's lifetime
Pays benefits to the insured when the insured reaches age 65

Question 10.10. What is the primary purpose of buying life insurance? (Points : 2)

as a tax shelter
to provide protection from financial losses
as an investment
to cover personal property

graygnu887

1). All of the following statements are false except

an investment bank is a financial firm that assists organizations in raising funds.

a corporation often deposits excess cash in an investment bank.

an investment bank provides checking services for large corporations.

most investment banks help investors buy and sell a corporation's stock.

under current laws, an investment bank provides services to individuals but cannot provide banking services to corporations.

2). (TCO 5) Dave Harris has just purchased a bond with a face value of $1,000 that pays 6%. The purchase price of the bond was $900, and the bond will mature in 5 years. What is the yield to maturity for this bond?

9.8%

3) (TCO 5) A characteristic of serial bonds is that they

will pay no interest payments.

will have varying issue dates.

will have a series of maturity dates.

cannot be called.

will all mature 10 years from the date of issue.

4).

(TCO 3) All of the following are disadvantages of leasing a vehicle except

automatic ownership interest in the car.

unlimited mileage on the car.

no need to meet credit requirements.

lease payments are likely to be lower than loan payments.

All of the other answers are advantages.

5). (TCO 4) John Brown owns a home in Oakland, California and because of the risk of earthquakes, he decides to purchase _____ to cover potential losses.

building and other structures

additional living expenses

personal property

personal liability

specialized coverage

6). (TCO 4) If Mark Wright obtains a permanent disability as a result of an injury on the job, most likely he will receive _____ as a source of disability income.

his employer

Social Security

worker's compensation

an individual insurance policy

his health insurance policy

7). (TCO 4) A(n) _____ is a document attached to an insurance policy that modifies coverage by adding or deleting a specified condition.

rider

waiver of premium

automatic premium loan

beneficiary

incontestability clause

8). (TCO 6) The Capitalist Mutual Fund's net asset value is $28.25. The fund has liabilities of $3 million and 1,600,000 shares have been issued. What is the value of the fund's portfolio?

9). (TCO 6) A benefit associated with an investment in a real estate limited partnership is that the investor

does not have to worry about capital gains tax.

does not have to pay federal income tax.

does not have to pay state income tax.

can invest in a shopping center or large building by investing as little as $5,000.

faces an investment that is very liquid.

10) (TCO 6) Chuck owns a home worth $140,000, a car valued at $30,000, and miscellaneous assets worth $7,500. He owes $75,000 on the home and $12,000 on the car, and has no other debts. His retirement account, in which he is fully vested, contains $17,500 in mutual funds. He is insured with a $250,000 term life insurance policy. What is his net worth?

11). (TCO 7) Brenda wants to leave a message of encouragement to her grandchildren just in case something happens to her in the near future. She would be interested in preparing a(n)

ethical will.

durable power of attorney.

letter of last instruction.

codicil.

formal will.

12). (TCO 7) Marion would be acting in the capacity of a(n) _____ if she is selected to manage the assets of her 16-year-old niece until the niece reaches the age of 21.

FIN 3440 Study Guide - Midterm Guide: Geico, Customer Retention, Usaa

Document Summary

Get access

Related Documents

FIN 3440 Lecture 5: Lecture 5 Homeowner S Insurance

FIN 3440 Lecture Notes - Lecture 4: Vehicle Insurance, Liability Insurance, Ath

FIN 3440 Lecture 4: ch4.doc

Related Questions