Use the following information to answer questions 29-31Danielle has the following personal property and liability coverages in place. No other endorsements arein place. The liability limits meet the minimum requirements of the umbrella insurer.Homeowners 3 PolicyCoverage A: $250,000Coverage B: $25,000Coverage C: $125,000Coverage D: $75,000Coverage E: $300,000Coverage F: $1,000Personal Auto PolicyCoverage A: 250/500/50Coverage B: $5,000Coverage C: 100/300Personal Umbrella Policy$1,000,000 limit$250 self-insured retention29. Danielle is driving to the store and runs a stop sign, causing an accident. The other driver is awarded$300,000 in damages as a result of the accident.Covered (by any policy): Yes / NoHO3 Amount: $PAP Amount: $Umbrella Amount: $30. Danielle is hosting a party at her house for her daughter's high school graduation. One of herdaughter's friends in attendance slips on the freshly refinished wood floors and is severely injured. Thefriend sues and is awarded $275,000 in damages for her injuries.Covered (by any policy): Y/NHO3 Amount: $PAP Amount: $Umbrella Amount: $

Coverage A: This covers the dwelling. Since the accident is related to a car, it doesn't fall under…

Answered: Danielle has the following personal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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B4.
1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income. b.Robert must claim the $1,200 premium paid by his employer as income. c.Robert must claim the $6,800 paid by the insurance company for the operation as income. d.None of these events are taxable on his 2021 return. 2. Electronically filed tax returns: a.Have error rates similar to paper returns. b.Offer faster refunds than paper returns. c.May not be transmitted from a taxpayer's home computer. d.Constitute less than 50 percent of the returns filed with the IRS. 3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of…
29. Brenda filed suit against her insurance company for deceptive trade practices. She seeks $5,000 in damages; $12,000 for mental anguish; and $10,000 for attorney fees. Her insurance company countersues for slander and seeks $10,000. If the court awards both parties what they are asking, how much would Brenda receive in most jurisdictions? a. $10,000 ob. $17,000 OC. $28,000 Od. $30,000
Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 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? Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each. Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Isis quit her job at A Corp. While at A Corp., Isis was enrolled in their group health insurance plan. Now, Isis works for C Corp., which also has a group insurance plan. According to the Health Insurance Portability and Accountability Act, C Corp. must ______. a. pay A Corp. so that Isis can maintain her health insurance through A Corp b. wait to enroll Isis in C Corp.'s plan until she has been employed with the company for 1 year c. reimburse Isis for any out-of-pocket expenses she incurred while unemployed d. allow her to participate in the company group health insurance plan
Terrell is the insured under a $100,000 whole life insurance policy. Terrell's planner has recommended that the policy be replaced with a new $100,000 universal life policy on Terrell. If this replacement takes place, which of the following will result? Terrell's new policy will cover suicide immediately. Terrell's new policy will be incontestable immediately. Terrell's new policy will not require underwriting. Terrell's new policy's premium will be based on his attained age.
The insured owns a personal umbrella liability insurance policy that has been in effect for more than 5 years. The insurance company will be able to nonrenew the policy for all of the reasons indicated below except The insured was convicted of a misdemeanor The insured’s producer had its agency contract terminated by the insurance company The primary automobile insurer is not A-rated for financial solvency The insured’s home was damaged due to weather related losses only
Julia pays $500 for an insurance policy with anexpected value of $120. Explain why this is a rational choice for Julia
Which of the following items would not automatically be covered under an HO-3 form? the insured’s driveaway, if damaged by falling object The insured’s pedigreed collie valued at $6000 or $7000 A lawnmower in the insured’s garage personal property of the insured’s daughter who is away from college
114
All of the following statements are true regarding the home mortgage interest deduction EXCEPT: 1) The mortgage must have been used to buy, build, or improve the taxpayer's home. 2) The interest paid on the first $750,000 ($375,000 for MFS filers) of qualified home mortgage debt is fully deductible. 3) The $750,000 ($375,000 for MFS filers) home mortgage limit applies to refinancing a qualified mortgage from 2018. 4) Deductible home equity debt is a qualifying acquisition debt that does not exceed the $750,000 ($375,000 for MFS filers) home mortgage limit when combined with all other mortgage debt.

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