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Kathleen Osness, aged 39, a massage therapist, decided to take out a limited-payment life policy. She chose this since she expects her income to decline in future years. Kathleen decided to take out a 20-year payment life policy with a coverage amount of $91,000. (Use Table 20.1 and Table 20.2.) (for females subtract 3 years when using Table 20.1.) a. Calculate her annual premium. (Round your answer to the nearest cent.) Answer is complete but not entirely correct. Annual premium $ 5,833.33 X b. If she decides to stop paying premiums after 20 years, what will be her cash value? (Enter your answer as a whole number.) Answer is complete and correct. Cash value $ 43.225 TADLE 20-1 Agc Five-year lemm Straight life Age Life Insurance rates for males (for tomolos, subtract 3 years trom the aae) 5.90 1.05 1.85 20 21 22 23 24 25 1.85 20 21 22 22 24 25 26 27 Twenty payment life 3.20 8.61 8.91 0.23 9.56 9.91 10.29 10.70 11.12 Age 20 21 22 23 24 25 26 27 26 27 annamm%B8%88% 28 20 30 31 32 11.58 Age 20 21 22 23 24 25 26 27 28 20 30 31 32 33 34 35 30 37 38 30 40 6.35 6.60 6.85 7.13 7.43 7.75 8.08 8.46 8.85 9.27 0.71 10.20 101 / 1 1 1.26 1 1 74 1.85 1.85 1.85 1.85 1.86 1.86 1.87 1.87 1.87 1.68 1.95 7038 2.23 244 267 2.95 3.24 3.52 3.79 11.01 126 4.LO 28 20 30 31 32 33 34 35 20 37 38 30 40 28 20 30 31 32 33 34 35 20 33 34 35 Twenty-year endowment 13.05 1 4.35 14.92 1 5.511 1 0.05 17.55 17.66 18.33 10.12 20.00 20.90 21.08 22.00 23.98 7518 26.35 27 614 7897 30.38 31.81 33.25 31.94 36.59 RR 39 40.00 12.05 12.07 13.10 13.67 147 14.92 15 16 30 17.04 17.81 19.61 19. 20.31 711 37 12.40 13.12 37 38 39 40 38 30 40 13.81 14.54 15.30 16.11 1696 12 12 12 13 11 12 113 44 2 112 44 44 1 44 TABLE 20-2 Nonforfoituro options based on $1,000 faco valuo Years 20-YEAR ENDOWMENT EXTENDED Amount of TERM pald-up Insurance Years Day Cash value Insurance policy in force 5 10 15 20 STRAIGHT LIFE EXTENDED Amount of TERM Cash paid-up value Insurance Years Day 29 B0 9 91 06 250 18 76 148 371 20 165 265 550 71 300 Option 1: Cash value $200.000 = 200 x 148 = 329.000 $1.000 20-PAYMENT LIFE EXTENDED Amount of TERM Cash pald-up value Insurance Years Day 71 220 19 190 186 521 28 19 317 781 37 176 475 1.000 Life Option 2: Roduced paid-up Insurance $200.000 = 200 x 3371 = 374.200 $1.000 92 229 29 140 319 520 20 160 610 790 35 300 1.000 1.000 life Option 3: Extended term Insurance Bon could continue this $200.000 policy for 20 years and 165 days. To an Insurer, you are a statistic. Your premiums are based on your risk factors, including your credit rating. Bad credit Increases the amount you pay for your premiums. Make certain to check your credit report annually for accuracy. Only premium for bodily Injury and property damage should be calculated, not the whole premium. (Use tables 20.5, 206, 20.7.) a. Calculate the premium for someone in class 10 for 10/20/5. Note: This premium is for compulsory Insurance. Answer is complete and correct. 15 184 Premium b. Determine how much the premium will be for class 10.50/100/10. Answer is complete but not entirely correct. Premium $ 2013 c. What is the difference between the two? Answer is complete but not entirely correct. 13 178 Difference RODILY INJURY TO OTHERS TABLE 20-5 Compulsory Insurance (based on class of driver ) DAMACE TO SOMEONE ELSE'S PROPERTY Class 5M Class 10/20 5129 10 17 $ 55 98 80 110 10 17 18 20 160 160 106 18 20 Explanation of 10/20 and 5 10 20 E Muxi buid for Muxit ut uid lu ULIC PETSUICI allidul for bodily injury Muxim puid for Eucly Jamaye per accident ir juty accident " Metal TABLE 20-6 Class Bodily injury 10 1/ 15/30 20/40 20/50 25/50 25/60 50/100 100/300 250/500 500/1,000 27 37 10 14 117 69 91 111 187 52 18 63 69 101 116 228 298 33 16 50 55 60 89 124 193 251 41 59 65 72 78 119 168 263 344 3/ 18 20 TABLE 20-7 Class 10M 25M 50M 100M 10 134 135 Damage to someone else's property 17 132 164 164 168 166 166 136 169 169 168 18 20 191 193 195 197 Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Rusty was at fault in an accident that caused $3,000 damage to the other auto and $1,500 damage to his own. Also, the courts awarded $14,400 and $7,600, respectively, to the two passengers in the other car for personal injuries. a. How much will the insurance company pay? Answer is complete but not entirely correct. Amount paid 22,600 X b. What is Rusty's share of the responsibility? Answer is complete but not entirely correct. Amount paid 4,500 X Kathleen Osness, aged 39, a massage therapist, decided to take out a limited-payment life policy. She chose this since she expects her income to decline in future years. Kathleen decided to take out a 20-year payment life policy with a coverage amount of $91,000. (Use Table 20.1 and Table 20.2.) (for females subtract 3 years when using Table 20.1.) a. Calculate her annual premium. (Round your answer to the nearest cent.) Answer is complete but not entirely correct. Annual premium $ 5,833.33 X b. If she decides to stop paying premiums after 20 years, what will be her cash value? (Enter your answer as a whole number.) Answer is complete and correct. Cash value $ 43.225 TADLE 20-1 Agc Five-year lemm Straight life Age Life Insurance rates for males (for tomolos, subtract 3 years trom the aae) 5.90 1.05 1.85 20 21 22 23 24 25 1.85 20 21 22 22 24 25 26 27 Twenty payment life 3.20 8.61 8.91 0.23 9.56 9.91 10.29 10.70 11.12 Age 20 21 22 23 24 25 26 27 26 27 annamm%B8%88% 28 20 30 31 32 11.58 Age 20 21 22 23 24 25 26 27 28 20 30 31 32 33 34 35 30 37 38 30 40 6.35 6.60 6.85 7.13 7.43 7.75 8.08 8.46 8.85 9.27 0.71 10.20 101 / 1 1 1.26 1 1 74 1.85 1.85 1.85 1.85 1.86 1.86 1.87 1.87 1.87 1.68 1.95 7038 2.23 244 267 2.95 3.24 3.52 3.79 11.01 126 4.LO 28 20 30 31 32 33 34 35 20 37 38 30 40 28 20 30 31 32 33 34 35 20 33 34 35 Twenty-year endowment 13.05 1 4.35 14.92 1 5.511 1 0.05 17.55 17.66 18.33 10.12 20.00 20.90 21.08 22.00 23.98 7518 26.35 27 614 7897 30.38 31.81 33.25 31.94 36.59 RR 39 40.00 12.05 12.07 13.10 13.67 147 14.92 15 16 30 17.04 17.81 19.61 19. 20.31 711 37 12.40 13.12 37 38 39 40 38 30 40 13.81 14.54 15.30 16.11 1696 12 12 12 13 11 12 113 44 2 112 44 44 1 44 TABLE 20-2 Nonforfoituro options based on $1,000 faco valuo Years 20-YEAR ENDOWMENT EXTENDED Amount of TERM pald-up Insurance Years Day Cash value Insurance policy in force 5 10 15 20 STRAIGHT LIFE EXTENDED Amount of TERM Cash paid-up value Insurance Years Day 29 B0 9 91 06 250 18 76 148 371 20 165 265 550 71 300 Option 1: Cash value $200.000 = 200 x 148 = 329.000 $1.000 20-PAYMENT LIFE EXTENDED Amount of TERM Cash pald-up value Insurance Years Day 71 220 19 190 186 521 28 19 317 781 37 176 475 1.000 Life Option 2: Roduced paid-up Insurance $200.000 = 200 x 3371 = 374.200 $1.000 92 229 29 140 319 520 20 160 610 790 35 300 1.000 1.000 life Option 3: Extended term Insurance Bon could continue this $200.000 policy for 20 years and 165 days. To an Insurer, you are a statistic. Your premiums are based on your risk factors, including your credit rating. Bad credit Increases the amount you pay for your premiums. Make certain to check your credit report annually for accuracy. Only premium for bodily Injury and property damage should be calculated, not the whole premium. (Use tables 20.5, 206, 20.7.) a. Calculate the premium for someone in class 10 for 10/20/5. Note: This premium is for compulsory Insurance. Answer is complete and correct. 15 184 Premium b. Determine how much the premium will be for class 10.50/100/10. Answer is complete but not entirely correct. Premium $ 2013 c. What is the difference between the two? Answer is complete but not entirely correct. 13 178 Difference RODILY INJURY TO OTHERS TABLE 20-5 Compulsory Insurance (based on class of driver ) DAMACE TO SOMEONE ELSE'S PROPERTY Class 5M Class 10/20 5129 10 17 $ 55 98 80 110 10 17 18 20 160 160 106 18 20 Explanation of 10/20 and 5 10 20 E Muxi buid for Muxit ut uid lu ULIC PETSUICI allidul for bodily injury Muxim puid for Eucly Jamaye per accident ir juty accident " Metal TABLE 20-6 Class Bodily injury 10 1/ 15/30 20/40 20/50 25/50 25/60 50/100 100/300 250/500 500/1,000 27 37 10 14 117 69 91 111 187 52 18 63 69 101 116 228 298 33 16 50 55 60 89 124 193 251 41 59 65 72 78 119 168 263 344 3/ 18 20 TABLE 20-7 Class 10M 25M 50M 100M 10 134 135 Damage to someone else's property 17 132 164 164 168 166 166 136 169 169 168 18 20 191 193 195 197 Rusty Reft, who lives in Territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Rusty was at fault in an accident that caused $3,000 damage to the other auto and $1,500 damage to his own. Also, the courts awarded $14,400 and $7,600, respectively, to the two passengers in the other car for personal injuries. a. How much will the insurance company pay? Answer is complete but not entirely correct. Amount paid 22,600 X b. What is Rusty's share of the responsibility? Answer is complete but not entirely correct. Amount paid 4,500 X