Fin 580

1. (TCO D) The most valuable single technique in private risk management to assist an individual in determining how lots life damages is needed is (Points 4) Computing the Human Life Value. utilise the probability of death each year, prevailing interest rates and mistaken inflation rates to find the discounted present value of a future(a) income stream. x Assessing the familys total economic needs and subtracting financial resources available to catch those needs.Estimating the sum of money which, when paid in installments, will produce the homogeneous income as the person would have earned, after deducting assumed amounts for taxes and personal nutriment expenses. Using a multiple of earnings adjusted for occupation. 2. (TCO D) Mike had a $100,000 whole life insurance policy with a $10,000 loan majuscule when he died. The policy had a $20,000 cash value prior to the loan. How more than will his beneficiary receive following Mikes death? (Points 4) $120,000 110,000 $100,0 00 xx $90,000 $30,000 3. (TCO D) If your business is terminated, COBRA provides for (Points 4) Cancellation of all group insurance benefits. Continuation of group insurance benefits until you atomic number 18 reemployed. Permanent lengthiness 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 best describes a pre-existing go over? 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 antecedently been treated. 5. (TCO D) The right of ______ gives the insurance company the right to recover its costs from the at-fault caller after the company has paid a claim to its insured. (Points 4) x Subrogation tribute Insurance interest Coinsurance None of these