1)

Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,800 worth of jewelry and $6,100 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance?

Uncovered portion of claim

$

2)

For each of the following situations, what amount would the insurance company pay? (Leave no cells blank - be certain to enter "0" wherever required.)

a.	Wind damage of $1,200; the insured has a $500 deductible.

Insurance payment

$

b.	Theft of a stereo system worth $1,600; the insured has a $500 deductible.

Insurance payment

$

c.	Vandalism that does $430 of damage to a home; the insured has a $500 deductible.

Insurance payment

$

3)

Becky Fenton has 40/80/35 automobile insurance coverage. If two other people are awarded $70,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

Insurance payment

$

4)

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Item4

Kurt Simmons has 60/120/15 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $6,900, and damage to the store was $18,820.

a.	What amount will the insurance company pay for the damages?

Insurance payment

$

b.	What amount will Kurt have to pay?

Personal liability

$

5)

Shaan and Anita currently insure their cars with separate companies, paying $990 and $745 a year. If they insure both cars with the same company, they would save 10 percent on ther annual premiums. What would be the future value of the annual savings over 9 years based on an annual interest rate of 7 percent? Use Exhibit 1-B. (Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Future value

$

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