Identify four types of personal property for which the covered loss is limited to a specific dollar amount under standard homeowner’s insurance policies.

As gene tests and genomic sequences become more commonplace, how can we prevent the emergence of "genetic discrimination" in employment and medical insurance?

Which of these accounts is included in the post-closing trial balance?

A. Supplies Expense

B. Accounts Payable

C. Sales Revenue

D. Insurance Expense

For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.

b. The Prepaid Insurance account has a $5,890 debit balance at the start of the year. A review of insurance policies shows$1,040 of insurance has expired by year-end.

Whole-life insurance policies typically can be surrendered while the insured is still alive in exchange for a determinable amount of money called the cash surrender value. When a company buys a life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuable resource in the event the officer dies, how should the company account for the cash surrender value?

Round the annual insurance premiums to the nearest dollar.

Ted Kotyla insured a rare book for its current value of $\$ 5,000$ under a replacement cost policy. The book, which originally cost $\$ 2,600$, was stolen from his home during a break in. The policy had a $\$ 100$ deductible. What total amount would the insurance company pay for this loss?

Which behavioral factor would influence the premiums of auto insurance?

A. Make and model;

B. Age of driver;

C. Safe driving;

D. Location.

Trisha Dabney's disability insurance policy will pay her 45 % of her average annual wages for the last 4 years. It will reduce the benefits paid by any amounts Trisha receives from worker's compensation insurance. Trisha's wages for the last 4 years were $24,560;$25,100; $25,820; and$26,200.

What was Trisha's average annual wage for the last 4 years?

Use the key terms to complete the following sentence:

A(n) __________________ is a contract purchased from an insurance company that guarantees a series of regular payments for a set time.

The personnel manager of Gibraltar Insurance Company estimates that the number of insurance claims an experienced clerk can process in a day is 40. Furthermore, the rate at which a clerk can process insurance claims per day during the $t$th week of training is proportional to the difference between the maximum number possible (40) and the number he or she can process per day in the $t$th week. If the number of claims the average trainee can process after 2 week on the job is 10/day, determine how many claims the average trainee can process after 6 week on the job.

Insurance Risk Insurance companies know the risk of insurance is greatly reduced if the company insures not just one person, but many people. How does this work? Let x be a random variable representing the expectation of life in years for a 25-year-old male (i.e., number of years until death). Then the mean and standard deviation of x are $\mu=50.2$ years and $\sigma=11.5$ years. Suppose Big Rock Insurance Company has sold life insurance policies to Joel and David. Both are 25 years old, unrelated, live in different states, and have about the same health record. Let $x_{1}$ and $x_{2}$ be random variables representing Joel's and David's life expectancies. It is reasonable to assume $x_{1}$ and $x_{2}$ are independent.

$$\begin{array}{l} \text { Joel, } x_{1}: \mu_{1}=50.2 ; \sigma_{1}=11.5 \\ \text { David, } x_{2}: \mu_{2}=50.2 ; \sigma_{2}=11.5 \end{array}$$

If life expectancy can be predicted with more accuracy, Big Rock will have less risk in its insurance business. Risk in this case is measured by $\sigma$ (larger $\sigma$ means more risk). Compare the standard deviation of the life expectancy for a single policy $\left(x_{1}\right)$ with that for two policies (W).

Match the terms with the definitions. Some terms may not be used.

a. attractive nuisance

b. coinsurance clause

c. endorsement

d. guest

e. homeowners insurance

f. liability coverage

g. overinsuring

h. personal property floater

i. renters insurance

j. replacement value

k. trespasser

I. uninvited guest

__Insurance that protects renters from property and liability risks

A potential customer for an $85,000 fire insurance policy possesses a home in an area that, according to experience, may sustain a total loss in a given year with probability of .001 and a 50% loss with probability .01. Ignoring all other partial losses, what premium should the insurance company charge for a yearly policy in order to break even on all$85,000 policies in this area?

Use the life insurance annual premium table the said chapter and lesson mentioned of the textbook. Treat all policyholders or customers as nonsmokers.

Reece Williams is $35$ years old and bought a $\$ 175,000$ term life insurance policy to insure that his daughter would have enough money to attend college in the event of his death. What is his annual premium?