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Last year, Maya bought a new Toyota Prius, securing financing from the dealership, Car City, under the following terms: every two weeks, Maya makes a payment of $200, and the car will be paid off in 3 years. She also purchased life and disability insurance through Car City for which she pays an extra $20 bi-weekly. Maya suffers a cardiac arrest and is unable to work for the next 6 months. She would like to know how the insurer will handle her claim. Which of the following statements is CORRECT? Select one correct answer from the list 1. Benefits paid to the dealership will be tax-free. Benefits paid to Maya will be tax-free. 3. Benefits paid to Maya will be taxable. 2. 4. Benefits paid to the dealership are taxable. ΟΟΟΟ Vanessa meets with Aelia, her insurance agent, to purchase an individual disability insurance policy. Vanessa tells Aelia that she is in good health, but she suffers from hypertension that requires her to take diuretic pills daily. How is the insurance company likely to treat Vanessa's application? Select one correct answer from the list 1. They will decline to issue the policy. 2. They will increase the coinsurance factor. They will add an exclusion for hypertension. They will impose a premium rating. 3. ΟΟΟΟ

Last year, Maya bought a new Toyota Prius, securing financing from the dealership, Car City, under the following terms: every two weeks, Maya makes a payment of $200, and the car will be paid off in 3 years. She also purchased life and disability insurance through Car City for which she pays an extra $20 bi-weekly. Maya suffers a cardiac arrest and is unable to work for the next 6 months. She would like to know how the insurer will handle her claim. Which of the following statements is CORRECT? Select one correct answer from the list 1. Benefits paid to the dealership will be tax-free. Benefits paid to Maya will be tax-free. 3. Benefits paid to Maya will be taxable. 2. 4. Benefits paid to the dealership are taxable. ΟΟΟΟ Vanessa meets with Aelia, her insurance agent, to purchase an individual disability insurance policy. Vanessa tells Aelia that she is in good health, but she suffers from hypertension that requires her to take diuretic pills daily. How is the insurance company likely to treat Vanessa's application? Select one correct answer from the list 1. They will decline to issue the policy. 2. They will increase the coinsurance factor. They will add an exclusion for hypertension. They will impose a premium rating. 3. ΟΟΟΟ

FINANCIAL ACCOUNTING
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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Last year, Maya bought a new Toyota Prius, securing financing from the dealership, Car City, under the following terms: every two weeks, Maya makes a payment of $200, and the car will be paid off in 3 years. She also purchased life and disability insurance through Car City for which she pays an extra $20 bi-weekly. Maya suffers a cardiac arrest and is unable to work for the next 6 months. She would like to know how the insurer will handle her claim. Which of the following statements is CORRECT? Select one correct answer from the list 1. Benefits paid to the dealership will be tax-free. Benefits paid to Maya will be tax-free. 3. Benefits paid to Maya will be taxable. 2. 4. Benefits paid to the dealership are taxable. ΟΟΟΟ
Transcribed Image Text:Last year, Maya bought a new Toyota Prius, securing financing from the dealership, Car City, under the following terms: every two weeks, Maya makes a payment of $200, and the car will be paid off in 3 years. She also purchased life and disability insurance through Car City for which she pays an extra $20 bi-weekly. Maya suffers a cardiac arrest and is unable to work for the next 6 months. She would like to know how the insurer will handle her claim. Which of the following statements is CORRECT? Select one correct answer from the list 1. Benefits paid to the dealership will be tax-free. Benefits paid to Maya will be tax-free. 3. Benefits paid to Maya will be taxable. 2. 4. Benefits paid to the dealership are taxable. ΟΟΟΟ
Vanessa meets with Aelia, her insurance agent, to purchase an individual disability insurance policy. Vanessa tells Aelia that she is in good health, but she suffers from hypertension that requires her to take diuretic pills daily. How is the insurance company likely to treat Vanessa's application? Select one correct answer from the list 1. They will decline to issue the policy. 2. They will increase the coinsurance factor. They will add an exclusion for hypertension. They will impose a premium rating. 3. ΟΟΟΟ
Transcribed Image Text:Vanessa meets with Aelia, her insurance agent, to purchase an individual disability insurance policy. Vanessa tells Aelia that she is in good health, but she suffers from hypertension that requires her to take diuretic pills daily. How is the insurance company likely to treat Vanessa's application? Select one correct answer from the list 1. They will decline to issue the policy. 2. They will increase the coinsurance factor. They will add an exclusion for hypertension. They will impose a premium rating. 3. ΟΟΟΟ
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