Fin 580

1. (TCO D) The most rich single technique in ad hominem risk management to assist an one-on-one in determining how much life story damages is needed is (Points 4) Computing the humanity Life Value. Using the probability of finish each year, prevailing interest grade and as shopping centered inflation rates to muster up the discounted present measure out of a incoming income stream. x Assessing the familys total economic involve and subtracting financial resources available to meet those needs.Estimating the sum of money which, when paid in installments, allow for produce the same income as the psyche would have earned, after deducting assumed amounts for taxes and own(prenominal) maintenance expenses. Using a ternary of earnings adjusted for occupation. 2. (TCO D) Mike had a $100,000 whole life insurance polity 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 donee 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 meeting insurance benefits. Continuation of group insurance benefits until you argon reemployed. Permanent prolongation of group health insurance. x Temporary continuation of group insurance benefits you pay premiums. Temporary continuation of group insurance benefits employer pays premiums. 4. (TCO D) Which of the following high hat describes a pre-existing condition? Points 4) An exclusion. Cancer, mall condition or other respectable diseases. An injury that results from an accident. Something not covered by the insurance policy. x A medical checkup condition for which one has previously been treated. 5. (TCO D) The refine of ______ gives the insurance alliance the right to domesticize its costs from the at-fault party after the company has paid a claim to its insured. (Points 4) x Subrogation Indemnity Insurance intere st Coinsurance none of these