Question

1. California is a comparative negligence law state. True or false

2. Granny Mayberry ‘s health insurance policy has a $500 annual aggregate deductible, 80/20 cost sharing deductible, and a $ 5000 maximum annual out of the pocket cap of $5000. She wrecks her Harley and breaks her hip, and her total medical bills for the injury are $12, 890. How much will her insurer pay for this claim?

show calculation please

a) 7,890 b) 10,312 c) 9912 d) 12890

3. Which of the following statements about term insurance is true?

a) the coverage is appropriate if the goals is permanent lifetime protection

b) most policies can be renewed for additional periods without evidence of insurability

c) premiums increase at a constant rate each time the policy is renewed

d) most policies have a cash value that is refunded when coverage cease

Answer 1

1) True

California negligence laws follow the legal doctrine of "comparative negligence," which allows a plaintiff to sue for the percentage of damages attributable to the defendant.

2) Medical bills for the injury =12890$

less: deductible =500$

Amount to be shared =12390$

80% to be paid by insurance co = 12390*0.8 =9912$

3) b)  most policies can be renewed for additional periods without evidence of insurability

Term insurance provides protection for temporary period