Fin 580

1. (TCO D) The most valuable single technique in ain risk management to assist an individual in find how much life amends is needed is (Points 4) Computing the Human liveliness Value. Using the probability of death each year, prevailing interest rate and assumed inflation rates to find the discounted present value of a future income stream. x Assessing the familys total economic needs and subtracting financial resources getable to meet those needs.Estimating the sum of m angiotensin converting enzymey which, when paid in installments, will get under ones skin the same income as the person would have earned, after deducting assumed amounts for taxes and personal maintenance expenses. Using a multiple of earnings adjusted for occupation. 2. (TCO D) microphone had a $100,000 whole life insurance policy 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 beneficiary 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 concourse insurance benefits. Continuation of group insurance benefits until you are reemployed. Permanent continuation 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 condition? Points 4) An exclusion. Cancer, tenderheartedness condition or other serious diseases. An injury that results from an accident. Something not cover by the insurance policy. x A medical condition for which one has previously been treated. 5. (TCO D) The right of ______ gives the insurance company the right to recover its be from the at-fault party after the company has paid a claim to its insured. (Points 4) x Subrogation Indemnity Insurance interest Coinsurance None of these