For a new life insurance product, the Nordlight Insurance Company set the following annual premium rates for each riskclass$1.80 per $1,000 of coverage for preferred risks$3.20 per $1,000 of coverage for standard risks$4.00 per $1,000 of coverage for substandard risksHolly Elana has applied for $100,000 of coverage under this new product. Ms. Elana is a proposed insured who representsan average level of risk. This information indicates that Ms. Elana's annual premium amount will be$180$300$320

Ms. Elana represents an average level of risk, which typically falls under the "standard risks"…

Answered: For a new life insurance product, the…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 39P

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An insurer issues a portfolio of identical 20-year term insurance policies to independent lives aged 60. The sum assured for each policy is $50,000 payable at the end of the year of death. The mortality of the portfolio follows the Standard Ultimate Life Table and the effective interest rate is 5% per annum. Assume the same mortality applies to each life in the portfolio. 10 000 identical policies are issued. calculate the present value of the loss on the whole portfolio.PLEASE ANSWER ASAP
choose three major insurance companies, obtain the premiums of life insurance policies for a 30 year old man with $300, 000 insurance coverage (death benefit). Compare the premium for term, whole or universal life insurance. Prepare a premium table and indicate which policy you consider and why?
You are analyst with Lifetime HMO, and you were asked to perform an analysis of services for services provided in January 2021. The HMO has a point-of-service (POS) option for its members but will pay only 50% of approved charges. If a member goes out of network for a medical procedure with a charge of $4,000, of which $2,800 is approved. The HMO will pay 100% of charges for in network charges at its hospitals. The agreed upon in network charges are $3,000. For the month of January 20X1, twenty patients elected to have a medical procedure. Ten of the patients were out of network. And ten of the patients were in network. What is the amount of total monetary payment for both out-of-network, and in-network the insurance company is obligated to pay for services rendered. Please show your work.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $110, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $100,000. Required: a. Make a table of the two possible payouts on each policy with the probability of each. (Negative answers should be indicated with minus sign.) Payout Answer is complete and correct. $ Outcome A: No Fire Outcome B: Fire! 110 $ (99,890) b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance, and standard deviation of your profit? (Do not round intermediate calculations. Round your standard deviation to the nearest whole number.) Answer is complete and correct. Expected Variance Return Standard Deviation $ 10 9,990,000 3,161
Tommy Cook is 19 years old and is interested in purchasing a whole life insurance policy with a face value of $80,000. a. Calculate the annual insurance premium for this policy. Note: Refer to the tables in the text for input data. Face value= Number of $1,000 = Rate per $1,000 = (whole life insurance, male -19) Annual premium = b. Calculate the monthly insurance premiums. Monthly percent Monthly premium = c. How much more will Tommy pay per year if he chooses monthly payments? Total of monthly payments = If paid monthly = More will be paid
Insurance underwriting relies heavily on statistics to determine the amount of insurance premium to charge. The probability that a 25-year-old female will live another year is 0.99786 based on data from the national registry agency. Calculate the insurance premium an insurance company would charge to break even on a 1 year $0.5million term-life insurance policy?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
am. 143.
TABLE 20.1 Life insurance rates for males (for females, subtract 3 years from the age. Non-binary individuals currently need to apply as male or female.)² Five-year term Straight life Twenty-year endowment 1.85 5.90 13.85 1.85 6.13 14.35 1.85 6.35 14.92 1.85 6.60 15.54 1.85 6.85 16.05 1.85 7.13 17.55 1.85 7.43 17.66 1.86 7.75 18.33 1.86 8.08 19.12 1.87 8.46 20.00 1.87 8.85 20.90 1.87 9.27 21.88 1.88 9.71 22.89 1.95 10.20 23.98 2.08 10.71 25.13 2.23 11.26 26.35 2.44 11.84 27.64 2.67 12.46 28.97 2.95 13.12 30.38 3.24 13.81 31.84 3.52 14.54 33.36 3.79 15.30 34.94 4.04 36.59 16.11 16.96 4.26 38.29 4.50 17.86 40.09 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Age 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Twenty- payment life 8.28 8.61 8.91 9.23 9.56 9.91 10.29 10.70 11.12 11.58 12.05 12.57 13.10 13.67 14.28 14.92 15.60 16.30 17.04 17.81 18.61 19.44…
Español Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds. If the holder of one of these policies dies before the age of 70, the company must pay out $23,900 to the beneficiary of the policy. Executives at Avicenna are considering offering these policies for $956 each. Suppose that for each holder of a policy there is a 4% chance that they will die before the age of 70 and a 96% chance they will live to the age of 70. If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the beneficiary. Avicenna can expect to make money from offering these policies. In the long run, they should expect to make dollars on each policy sold. Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose dollars on each…
St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,.000 is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and govemment health care agencies. St. Joseph's estimates that 20 percent of these third-party payor charges wll be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $18.000 is collected from the patients during the year and $1,300 of price adjustments are granted to individuals. b. Actual contractual adjustments total $306,000. The remalning recelvable from third-party payors Is collected. (If no entry Is…
which of the following is not an example of a nontaxable fringe benefit? Emploven provided parkins of $120 per month. Dualica emploree discounts Group-term life insurance policy providing $100,000 of coverage Monthly employer provided transit benefit of $100.

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