Fin 580

1. (TCO D) The most valuable single technique in personalised risk management to assist an individual in determining how much life insurance is needed is (Points 4) Computing the Human Life Value. Using the hazard of finis each year, prevailing intimacy rates and assumed inflation rates to find the discounted present value of a future income stream. x Assessing the familys positive economic needs and subtracting financial resources available to meet those needs.Estimating the sum of money which, when paid in installments, will produce the same income as the person would buzz off earned, after deducting assumed amounts for taxes and personal maintenance expenses. Using a multiple of earnings adjusted for occupation. 2. (TCO D) Mike had a $100,000 whole life insurance insurance with a $10,000 loan outstanding when he died. The policy had a $20,000 cash value prior to the loan. How much will his beneficiary receive following Mikes death? (Points 4) $120,000 110,000 $100,000 xx $ 90,000 $30,000 3. (TCO D) If your employment is terminated, COBRA provides for (Points 4) Cancellation of all group insurance benefits. Continuation of group insurance benefits until you are reemployed. Permanent continuation of group health insurance. x short-lived continuation of group insurance benefits you pay premiums. Temporary continuation of group insurance benefits employer pays premiums. 4. (TCO D) Which of the following best describes a pre-existing take aim? Points 4) An exclusion. Cancer, heart condition or other serious diseases. An injury that results from an accident. Something not covered by the insurance policy. x A medical condition for which one has previously been treated. 5. (TCO D) The make up of ______ gives the insurance company the right to recover its costs from the at-fault party after the company has paid a claim to its insured. (Points 4) x Subrogation Indemnity Insurance interest Coinsurance None of these