Question

1. An insurance company sells a $90,000 one-year term life insurance policy for a premium of $458. Find the expected value to the company of a single policy if 99.53% of the insured people survive one year.

A. $35

B. $55

C. $458

D. $89,542

2. 47% of all people in a community favor the development of a mass transit system, while only 18% of the people in that community both favor it and do not own a car. If a person who favors the development of a mass transit system is randomly selected, the probability he/she does not own a car equals approximately:

A. 0.470 B. 0.083 C. 0.383 D. 0.180

Answer #1

Suppose a life insurance company sells a $190,000 one-year
term life insurance policy to a 20-year-old female for $330. The
probability that the female survives the year is 0.999502. Compute
and interpret the expected value of this policy to the insurance
company.

A 20-year-old female purchases a 1-year life insurance policy
worth $250,000. The insurance company determines that she will
survive the policy period with probability 0.9995.
(a) If the premium for the policy is $300, what is the expected
profit for the company?
(b) At what value should the insurance company set its premium
so its expected profit will be $250 per policy for 20-year-old
females?

And
insurance company sales a one year term life insurance policy to an
80-year-old woman. The woman pays a premium of $1000. If she dies
within one year the company will pay $20,000 to her beneficiary.
According to the US centers for disease control and prevention the
probability that a 80-year-old woman will be a live one year later
is 0.9516. But X be the profit made by the insurance company. Found
the probability distribution in the ass but the...

An insurance company sells a $12,000, five-year term life
insurance policy to an individual for $640. Find the expected
return for the company if the probability the individual will live
for the next five years is 0.98. (Round your answer to the nearest
cent.)

a 30 -year old woman purchases a $200,000 term life insurance
policy for an annual payment of $460. Based on a period life table
for the U.S. Government, the probability that she will survive the
year is 0.999051. Find the expected value of the policy for the
insurance company. Round to two decimal places for currency
problems.

On July 1, a company paid the $2,400 premium on a one-year
insurance policy with benefits beginning on that date. What will be
the insurance expense on the annual income statement for the first
year ended December 31?

6. A 35-year-old woman purchases a $100,000 term life insurance
policy for an annual payment of $360. Based on a period life table
for the U.S. government, the probability that she will survive the
year is 0.999057. Find the expected value of the policy for the
insurance company. need a step by step description via
excel

On April 1, a company paid the $2,550 premium on a three-year
insurance policy with benefits beginning on that date. What amount
of the insurance expense will be reported on the annual income
statement for the year ended December 31?

On October 1, 2019, Oscar Company paid $1,800 cash for a
one-year insurance policy on a truck used in the business for
making deliveries. The insurance policy will be effective until
September 30th, 2020. At December 31st, 2019, the prepaid asset
related to this insurance policy will be

On May 1, 2017, a company purchased a one-year insurance policy
for $1,560. The policy was renewed for another year on May 1, 2018,
for $1,680. The company recorded both payments as expenses when
paid. What is the effect of this on the company’s 2018 calendar
year net income and year-end assets?
A : Net income is overstated by $40 and assets are overstated by
$560.
B : Net income is understated by $40 and assets are understated
by $560....

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