Unit 5 Attempt 2
What is your average tax rate if you pay taxes of $6646 on taxable income of $51580?
=6646/51580 =.1288
Long-term care insurance pays for nursing home expenses as well as home health care.
True
Most homeowner's insurance does not cover flood damage.
True
Under your PPO, emergency room care at a network hospital is 80% covered after the member has met a $100 annual deductible. You went to the hospital within your PPO network, and you had not paid any amount toward your deductible during the year of your emergency room visit. Your total bill was $1100. How much will you have to pay?
=100+(1100-100)*(1*80%) =900 WRONG
How much would you receive with actual cash-value coverage for a four-year-old sofa destroyed by fire? The sofa would cost $855 to replace today, whereas it cost $800 four years ago and had an estimated life of 8 years.
445
You have take home pay of $725 a week. Your disability insurance coverage replaces 70% of your earnings after a four-week waiting period. What amount would you receive in disability benefits if an illness keeps you from work for 20 weeks?
= (0.75 * 725) * (20-4) =8700 WRONG
Your health insurance requires a copay of $35 each time you see your doctor. You have already met your $1250 deductible for the year, but you are far below your out-of-pocket maximum payment of $5000 for the year. Your doctor charges patients without insurance $100 per visit. How much must you pay for your visit to the doctor in this situation?
=(5000-1250)/35 =107.14 WRONG
You plan to buy a house for $250000. If real estate prices in your area are expected to increase in value by 3% per year, what is its expected value in 18 years?
=250000*(1.03)^18 =425608.27
In a real estate short sale the balance owed on the mortgage falls short of the proceeds of the sale.
False
Medicare is divided into two parts: Part A, which is supplemental medical insurance, and Part B, which provides hospital insurance benefits.
False
The individual designated to receive the insurance policy's proceeds upon the death of the insured is:
the beneficiary
Common automobile insurance discounts include:
- a good student discount. - a low annual mileage discount. - an accident free discount. - a discount for combining auto and home insurance.
Common predatory mortgage lending practices include:
- excessive points. - prepayment penalties. - loaning more than the borrower's - ability to repay. loan flipping. WRONG
Basic health insurance coverage includes:
- hospital expense - insurance surgical expense insurance. - physician expense insurance.
Ways to lower the cost of your insurance coverage include:
- taking advantage of discounts. - staying accident free. - increasing your deductibles. - comparison shopping.
You were in an accident that required surgery and five days of recovery in the hospital. Your total hospital bill reached $100,000. At the time of your accident you had previously paid nothing in health care costs for the year. Your health insurance has a deductible of $1750 per year, a coinsurance rate for hospitalization of 10%, and an individual out-of-pocket maximum payment of $3000 for the year. How much must you pay out-of-pocket for your care in this situation?
100000-1750=98250 98250*.1=9825 9825+1750=11575 WRONG
Your car insurance company provides a 20% discount for good students (who maintain a B average or above). If your annual premium without discounts is $960 per year. How much money will your good grades save you on your car insurance this year?
192
Your elderly grandmother requires nursing home care at a cost of $3000 per month. How much would 9 years in the nursing home cost in total even if the price of her care does not increase?
3000*12=36000 36000*9=324000
How much would you receive with replacement cost coverage for a four-year-old sofa destroyed by fire? The sofa would cost $830 to replace today, whereas it cost $800 four years ago and had an estimated life of 8 years.
430 WRONG
A type of insurance that covers all perils except those specifically noted as excluded is:
open perils insurance