1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80%coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 torepair. What compensation will the insurance company pay?2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy forSandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage forher liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to theliability coverage, she purchased comprehensive and collision insurance with a $250deductible on comprehensive and a $500 deductible on collision.TABLE 19-5Annual Automobile Liability Insurance PremiumsTerritory 1Territory 2Liability LimitsBADGOODОССGOODОССBAD50/100/50385600846354552778100/300/100425682961391627884250/500/2504607501036423690953500/1000/50053084312084887761111GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy"Bodily injury maximum for one person/Total bodily injury coverage per accident/Property damageTABLE 19-6Annual Auto Insurance Premium Rates for Comprehensive and CollisionTerritory 1ComprehensiveCollision$0 Deductible$1,000 DeductibleBADModelVehicle$250 Deductible$500 DeductibleClassAgeGOODОССBADGOODОССBADGOODОССBADGOODОСС10–15849341129393628759535855127947175311262-3520831100535055967644971810743966339464-53976357682674275163966339463495578336+3745987232524024863325307932924676980-1502803971338540653503804120244370810582–34477158643014815814176679983675878794-53425466602303674443675878783235177736+32151462121634641829747470926141862430-1472755913318508614478764114242167210062-34206728122834525463926279383455528264-53215136212163454173425478183014817206+302483584203325393277442661244389582Territory 2ComprehensiveCollisionModelVehicle$0 Deductible$250 Deductible$500 Deductible$1,000 DeductibleClassAgeGOODOCCBADGOODOCCBADGOODОССBADGOODОССBAD10-1514822994346553668492787117743369310362-34577328843084925944136619883645828704-53495596762353764543645828713215137676+3295266362213544273054887302694306420–144270785429747557446373911064076519742-33936297602654235113846149183385408084-53014815812023233913385408072974757116+28345254719030436827343665324038457530–141566480328044754044070210513876199252-33705917152493984813615778633185087604-52834525461903043673155037522774436626+266425514179286346255407608224358536GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy

Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80% coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 to repair. What compensation will the insurance company pay?

1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80% coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 to repair. What compensation will the insurance company pay?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter10: Managing Property And Liability Risk

Section: Chapter Questions

Problem 2DTM

See similar textbooks

Similar questions

2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy for Sandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage for her liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to the liability coverage, she purchased comprehensive and collision insurance with a $250 deductible on comprehensive and a $500 deductible on collision. TABLE 19-5 Annual Automobile Liability Insurance Premiums Territory 1 Territory 2 Liability Limits* GOOD ОСС BAD GOOD ОСС BAD 50/100/50 385 600 846 354 552 778 100/300/100 425 682 961 391 627 884 250/500/250 460 750 1036 423 690 953 500/1000/500 530 843 1208 488 776 1111 GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy "Bodily injury maximum for one person/Total bodily injury coverage per accident/Property damage TABLE 19-6 Annual Auto Insurance Premium Rates for Comprehensive and Collision Territory 1…
Toby wishes to obtain auto insurance for his two-year-old car in model class H. He wants 50/100/50 liability coverage. He lives in Territory 1 and has been assigned to driver class 3 with a rating factor of 1.5. What would be his total premium? Round your answer to the nearest cent. Bodily injury coverage is $98 annually. Property damage is $63 annually. Collision with $250 deductible is $93 annually. Collision with $500 deductible is $89 annually. Full Coverage Comprehensive is $76 annually. Comprehensive with a $100 deductible is $68 annually.
6. Jessa is 19 and is trying to determine the annual premium for her auto insurance. She finds that she will pay $223 for $50,000 in property damage coverage, $44 for uninsured motorist coverage, $68 for comprehensive coverage, and $98 for collision coverage. The youthful-operator factor is 2.35 because she has been through a driver training course. What is Jessa's annual premium? O $914.15 O $1,017.55 O$909.30 O$433.00
Problem: Your cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
Emilio is purchasing homeowner's insurance. His house was recently appraised at $266,000. Emilio plans on insuring the contents at 50% of the home's value. Use Table 19-4 in your text to determine the annual homeowner's insurance premium if Emilio's home has structural classification A and area rating 3. Annual homeowner's insurance premium: $
Robert wishes to obtain auto insurance. He wants 10/20/5 liability coverage, $250 deductible collision, and $100 deductible comprehensive. He lives in territory 3 and has been assigned to driver class 3 with a rating factor of 1.65. Based on Table 19-6 and Table 19-7, what would be his total premium (in $), if his 5-year old car is in model class X? Round your answer to the nearest cent. $
Jessica Railes is purchasing a condo and is shopping for an HO-6 policy. Her auto insurer quoted her an annual rate of $ 450.$450. However, if she were to insure both the condo and her car with the same company, the insurer would give her a discount of 66 percent on her HO-6 policy and a discount of 88 percent on her $970970 annual auto premium. By how much will this reduce Jessica's premium? In addition to the discount, what are other advantages of purchasing both auto and homeowner's insurance with the same company? Question content area bottom Part 1 The amount by which Jessica's premium would be reduced is $104.6104.6. (Round to the nearest cent.) Part 2 In addition to the discount, what are other advantages of purchasing both auto and homeowner's insurance with the same company? "Another advantage is that if Jessica ever had a claim involving both her home and her car (e.g., a tree falling on a car at home during a wind storm), it would be…
Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury liability, $50,000 for property damage liability, $3,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. Zachary loses control and skids on ice, running into a parked car and causing $2,645 damage to the unoccupied vehicle and $4,500 damage to his own car. Total paid by the insurance company $ Zachary's out-of-pocket costs $ Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $50,000 each. Total paid by the insurance company $ Zachary's out-of-pocket costs (for both victims) $ Zachary's 18-year-old son borrows his car. He backs into…
Before you are able to purchase a home you need to get pre-qualified and determine the maximum amount you can afford for the mortgage payment. The mortgage company that you visit uses the qualifying ratios 29/41. After speaking with the mortgage broker and answering several questions, the broker compiles this information regarding your income and expenses: You have a monthly income of $5,500. Your significant other that is living with your and will be on the loan earns $4,500 monthly. You have 2 car payments, one is $325 and the other is $280. Your significant other has a motorcycle payment of $450. You have a credit card payment of $25. Your significant other has a credit card payment of $180. The annual property tax in the area that you are considering to purchase the house has an average amount of $2800, while the average home insurance is $800 annually. Determine the anticipated monthly payment of the mortgage based on the given ratios. A) The Front-End (AKA: Housing) Ratio: ? B)…
Problem: Your cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) What is your cousin and her partner's combined housing expense ratio? (b) What is their total obligations ratio? (c) For what kind of mortgage can they qualify, if any? (d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
Use Worksheet 5.3. Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first home. They have a comt annual income of $67,500 and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insurance property taxes will be $250 per month. They expect the mortgage lender to use a 30 percent (of monthly gross income) mortgage payment afford ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 10 percent down payment. Based on this information, use th home affordability analysis form in Worksheet 5.3 to determine the highest-priced home the Harrisons can afford. Assume that closing costs are o of the down payment. Round the answer to the nearest dollar.
: "Home insurance and options" You own a house that costs $200,000 to build. You buy a $15,000 insurance policy to compensate you for damage to the house. The deductible is $25,000. (If your house suffers $4,000 damage from a storm, you pay for all repairs yourself. If the house suffers $45,000, in damage, you pay $25,000 and the insurance company pays the remaining $20,000.) (1) Graph the positions of the unhedged home, the home insurance and the hedged home position on the profit and loss diagram. In the diagram, specify the relevant values on the diagram. (2) To which trader type the insurance company belong? Explain your answer. a. Call buyer b. Call seller c. Put buyer d. Put seller