Mr. Sultan had health insurance while he was studying in the UK. He was diagnosed with a significant depressive episode, and he made a claim to the insurance company for the cost of £10,000 for a health pack provided by a gym. The health pack included: 1 year's nutritionist appointments; a nutrition program; meals; 4 personal training sessions; and 1-year free membership at the gym. Mr. Sultan did not read his policy nor he understand the terms and conditions but he thinks that his insurance should cover the gym health pack as a treatment for his depression. Required: Determine whether he can claim the gym expenses under his insurance policy? And justify your answer with reasonable justifications?
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- Roger Orfield had a skiing accident, and the doctor told him he must not work for the next four weeks. Roger earns $3,000 per month. How long must Roger wait before collecting disability insurance? How much will Roger be able to collect? What is the maximum length of time Roger could collect disability insurance if his doctor tells him he is unable to work? Is his disability check taxable?Robert had an accident and injured a driver and her car. He has auto insurance with the minimum coverage for Illinois He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage. The driver's injuries cost $5,000 and damages to her car cost $3,000. Robert's car had damages costing $4,000. How much will the Insurance company pay for these claims? O A. $11,750 O B. $11,250 O C. $3,750 O D. $12,000William purchased a universal life policy on his own life. When his son Ben turned 25, William changed the life insured to Ben's life, and transferred ownership of the policy to Ben. The policy has a cash surrender value of $50,000 and an adjusted cost basis of $22,000. Ben took a policy loan of $10,000 for each of the next five years to travel around the world. He surrendered the policy after five years. Which of the following statements is true? O a) William would have $28,000 of taxable income as a result of the transfer. O b) Ben would have $10,000 of taxable income for each of the five years. O c) Ben would have about $5,600 of taxable income for each of the e years. O d) william would have $22,000 of taxable income as a result of the transfer.
- Kofi is a wealthy man based in Accra. In November 2021 Kofi bought a brand-new Toyota Prado from Mr. 419 and made the full payment towards the purchase. After paying for the car Kofi who had decided to travel to the United Kingdom (UK) for one week pleaded with Mr. 419 to keep the car in his (Mr. 419) garage for the period of his absence from Ghana. Immediately Kofi traveled out of Ghana, Mr. 419 sold the car to Madam Y, who did not know that Kofi had already bought the car. Kofi returned to Ghana after a week away in the UK and went to Mr. 419’s garage for his car only to realize that Mr. 419 had sold the car to Madam Y. Kofi is livid about the situation and has sworn to recover the car from Madam Y, after which he will mercilessly deal with Mr. 419. Advise Kofi as to legal rights, if any to recover the car from Madam Y, as well as his cause of action against Mr. 419 if any. Your solution should follow the IRAC Principle is an acronym which depicts, “I” Identification of area of…Barbara was driving her vehicle, and her friend Kevin was a passenger. They were starting a one-week visit with Kevin's parents, who live in the same state about 150 miles south of the town where Barbara and Kevin live. Barbara's vehicle is insured under a PAP listing her as the named insured. These are the coverages included in the policy: Coverage A-Liability: $50,000 Each person $100,000 Each occurrence Property Damage: $50,000 Coverage B-Medical Payments: $1,000 Each person Coverage C-Uninsured Motorists: $50,000 Each person $100,000 Each occurrence To lower her premiums, Barbara decided not to carry Coverage D-Damage to Your Auto on her five-year old vehicle. About one hour into the trip, as they were traveling in the southbound lanes of the highway, a northbound vehicle crossed the median and struck Barbara's vehicle. This four-door sedan was operated by Louise, who died at the scene. As part of the accident investigation, it was determined that Louise suffered a heart attack,…1. The Ndlovu family has applied for a new medical Scheme membership. Bokamoso (age 33 years) and his wife, Lebo (age 26 years) have a son Junior (age 4 months). They also want to Bokamoso's mother, Lethabo (age 56). She lives with them and is financially dependant on them. The healthcare broker has advised that a 50% late joiner penalty will apply to her membership. 2. The standard contributions are as follows: Role Principal member Spouse / Adult dependant Child dependant b. R9 833 c. R10 170 d. R11 925 Contribution e. None of the above R 2 400 R 2 100 R 900 Contribution to Medical Savings Account Calculate their total monthly contribution and choose the correct answer. a. R9 675 R 360 R 315 R 135 Total contribution R 2 760 R 2 415 R 1 035
- Belinda spent the last 60 days of 2021 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 toward the cost of her stay. Beliinda also received $7,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $400. If the amount is zero, enter 0. What is the effect on Belinda's gross income? Her available exclusion is $ therefore, the amount included in her gross income is SSusan is in an indemnity health insurance plan that has a $500 deductible and a co- insurance percentage of 80/20. Susan falls down a flight of stairs and breaks her leg. She is hospitalized and the total cost of the hospital stay is $12,000. How much of the $12,000 is Susan responsible to pay and how much will the insurance company pay?Lokalalo is a New Zealand company helping Kiwi families redesign their homes. The balance date is 31 August. Lokalalo knows that not all their customers will pay so they take out insurance for that purpose. The insurance does not cover them for their full loss unfortunately. Lokalalo pays for the insurance in advance, which gives them 12 months of cover. Lokalalo paid $15,000 on 1 August 2020 for cover for the next 12 months. Paulo Jr. asks you the following questions (You do not need to provide the definition of any assets, liabilities, income or expenses. If you believe there is no effect on one financial statement, please state “no effect” instead of leaving a blank): What happens in the balance sheet at 31 August 2020 and in the income statement and the statement of cash flows for the month of August 2020? At 31 August 2020 or for the month of August 2020:
- Lokalalo is a New Zealand company helping Kiwi families redesign their homes. The balance date is 31 August. Lokalalo knows that not all their customers will pay so they take out insurance for that purpose. The insurance does not cover them for their full loss unfortunately. Lokalalo pays for the insurance in advance, which gives them 12 months of cover. Lokalalo paid $15,000 on 1 August 2020 for cover for the next 12 months. Paulo Jr. asks you the following questions (You do not need to provide the definition of any assets, liabilities, income or expenses. If you believe there is no effect on one financial statement, please state “no effect” instead of leaving a blank): What happens in the balance sheet, income statement and statement of cash flows on the date of the transaction when the $15,000 is paid? When the cash is paid on 1 August 2020:Xander was hit by a wayward bus while on his way to work. He survived but had to pay P500,000 for his hospitalization. He was unable to work for 7 months which meant that he did not receive his usual salary of P10 000 a month or a tolal of P60,000. He sued the bus company and was able to abtain a final judgment awarding him the following: P100,000 as reimbursement for his hospitalization; P60,000 for the solories he foiled io receive while hospitalize d P200.000 as moral damages fer his pain and suitering. arid -P100,000 as exemplary damages. He was able to collect in full from the judgment. How much is excluded from gross income?Gabriella is an IT consultant. Three years ago, she completely lost her sight as the result of an accident. Gabriella has returned to work on a part-time basis, but only earning $2,000 a month, instead of the $5,000 she made prior to her accident. She has an individual disability insurance policy that has both residual disability and presumptive disability clauses. The policy has a monthly benefit of $3500. What amount of monthly benefit should Gabriella be receiving presently, assuming that the benefit is payable for ten years? Question 37 options: $2,100 per month. $3,500 per month. $5,000 per month. $1,500 per month.