27-Joyce was injured by an uninsured drunk driver while she was riding in a friend's car. Joyce and her friend each have a PAP with an uninsured motorist coverage limit of $50,000/$100,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries? Select one: a. Each policy will pay $35,000. b. Joyce's policy will pay $50,000, and the friend's policy will pay nothing. c. Joyce's policy will pay $50,000, and the friend's policy will pay $20,000. d. The friend's policy will pay $50,000, and Joyce's policy will pay $20,000. e. The friend's policy will pay $70,000, and Joyce's policy will pay nothing.

28- Mike and Susan built their "dream home." They insured their home for its full replacement cost. They also added an endorsement that will pay up to an additional 25 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insured their home is called Select one: a. actual cash value. b. valued policy coverage. c. extended replacement cost. d. guaranteed replacement cost.

29- Alex just purchased a home. A friend told him to consider insurance coverage for natural disasters when insuring the home. Losses from all of the following perils are covered under the standard HO-3 policy EXCEPT Select one: a. tornadoes. b. floods. c. hurricanes. d. forest fires.

30- If John has a $500 aggregate deductible on his health insurance policy, and he has a $700 medical bill and an $800 medical bill during the policy year, how much he will receive from the insurance company in total for the two bills (assume no coinsurance in his policy) ? Select one: a. $1000, b. $600, c. $1,500 d. $500.

31- If an insured can only afford an annual premium payment of $500, which type of life insurance contract will generally offer him the greatest amount of death protection? Select one: a. Traditional whole life, b. term life, c. universal life, d. variable life.