Consider the following: 1,000 dwellings valued at $100,000 each. Each owner faces risk of a $100, 000 loss. Owners agree to share losses that occur. If probability of loss is 0.02, and insurance company charges 200 additional amount for operating expenses and services, calculate premium to be paid by each owner
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- Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 24-year-old female for $360. The probability that the female survives the year is 0.999477. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? O A. The insurance company expects to make an average profit of $32.71 on every 24-year-old female it insures for 1 month. O B. The insurance company expects to make an average profit of $359.81 on every 24-year-old female it insures for 1 year. O C. The insurance company expects to make an average profit of $20.84 on every 24-year-old female it insures for 1 month. O D. The insurance company expects to make an average profit of $229.25 on every 24-year-old female it insures for 1 year.3. A homeowner’s house is insured at $950,000. The insurer requires 75% coverage for full insurance. The home sustains $25,300 damage from fire. Thepolicy has a deductible of $10,000, which decreases linearly to zero whenthe total cost of the loss is $20,000. The house is valued at $1,360,000.How much does the insurer reimburse?A borrower purchased a $250,000 house with 5 percent down payment taking a mortgage loan for the rest of the amount. Private mortgage insurance covers 6 percent of the loan. Suppose the borrower defaults after the loan has been paid down to $223,000. Suppose further the lender is able to sell the foreclosed house for $211,000. What compensation from the mortgage insurer does the lender get?
- Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 24-year-old female for $240. The probability that the female survives the year is 0.999514. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.)Suppose a company offers a standard insurance contract with a premium (r) of $1,000 and a payout (q) of $10,000. Suppose that Eleanor earns a healthy state income of $30,000, a sick state income of $20,000, and has a 5% chance of becoming ill. From this information, you can determine that the expected profit for the insurance company is likely: O positive O equal to zero O negativeThe Bourassas decide to sell a home for $460,000. They are charged a real estate commission of 8% of the selling price, title insurance that is 1.2% of the selling price, and an escrow fee of $875. (a) What amount (in dollars) do the Bourassas receive after fees? (b) What percentage of the selling price was fees? Round your answer to the nearest percent.
- The Bourassas decide to sell a home for $480,000. They are charged a real estate commission of 8% of the selling price, title insurance that is 1.2% of the selling price, and an escrow fee of $825. (a) What amount (in dollars) do the Bourassas receive after fees? $? (b) What percentage of the selling price was fees? Round to the nearest tenth of a percent. ? %Find the annual homeowners insurance premium on a masonry home located in zone 1 if the home is insured for $237,000. The owner chooses a $1,500 deductible and has good credit. E Click the icon to see a hypothetical table of Estimated Annual Homeowners Insurance Premium Rates per $100 of Face Value. The annual homeowners insurance premium is $ (Simplify your answer. Type an integer or a decimal.)The Tomlinsons decided to sell their home for $355,000. They are charged a real estate commission of 3.5% of the selling price, title insurance that is 1% of the selling price, and an escrow fee of $900. What amount (in dollars) do the Tomlinsons receive after fees? $ ? What percentage of the selling price was fees? Round your answer to the nearest tenth of a percent. % ?
- The Tomlinsons decide to sell their home for $345,000. They are charged a real estate commission of 5.5% of the selling price, title insurance that is 1% of the selling price, and an escrow fee of $800. (See Example 2 in this section.) What amount (in dollars) do the Tomlinsons receive after fees? (Enter a number.)$ What percentage of the selling price was fees? Round to the nearest tenth of a percent. (Enter a number.)At May 31, 20x1, Quay owned a P10,000 whole-life insurance policy with cash surrender value of P4,500. The cash surrender value is used as a collateral security for an outstanding loan of P2,500. In Quay's May 31, 20x1 statement of financial position, what amount should be reported as investment in life insurance? Answer:Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $150, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $140,000. f. Continue to assume the company has issued two policies, but now assume you take on a partner, so that you each own one-half of the firm. Make a table of your share of the possible payouts the company may have to make on the two policies, along with their associated probabilities. (Negative answers should be indicated with a minus sign. Round your "Probability" answers to 4 decimal places.)