Business Math Final Exam Questions with Complete Solutions

Beneficiary - ANSWER-Designed to receive the proceeds Reasons health insurance is expensive - ANSWER-No incentive economize, medical care is sophisticated, high malpractice insurance costs Term Life Insurance - ANSWER-life insurance that pays a benefit in the event of the death of the insured during a specified term. cash-value life insurance - ANSWER-has a savings component and builds cash values Primary advantage of term life insurance - ANSWER-Affordability Patient Protection and Affordable Care Act - ANSWER-Provide health insurance to those who are uninsured IANC - ANSWER-Interest-adjusted net cost Things you should consider when choosing how much home insurance you need - ANSWER-A fire, burglary, or auto accident personal liability insurance - ANSWER-Protects policyholder and family from financial loss if someone is injured on their property, liability suits and medical expenses Ways to lower the cost of home owners insurance in premium- - ANSWER-Keep your credit score high, location of home, type of structure, level of coverage and policy type 80% rule? - ANSWER-Replacement cost coverage is in effect ONLY if the home if the home is insured for at least 80% of its replacement cost Deductible - ANSWER-The amount an insured person must pay before the insurance company pays on a claim In 2014, almost 26% of accidents involved with cell phones? T or F - ANSWER-True What factors determine the cost of auto insurance? - ANSWER-Type of car, use of car, driver's personal characteristics, driver's driving record, where you live, discounts you qualify for, insurance credit score Common automobile insurance discounts - ANSWER-Accident free, multiple cars, low annual mileage, same company for car and home, low "damage ability", good student