{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 12 Discussion

Week 12 Discussion - ACE 245 Discussion Sections Week 12...

This preview shows pages 1–2. Sign up to view the full content.

ACE 245 Discussion Sections – Week 12 Goals: 1) Be able to analyze basic insurance policy provisions and insurance need; 2) Be able to analyze stock trading information and compute stock yields 1. Joe has a health insurance policy with a \$500 calendar year deductible, a \$2,000 out-of-pocket cap, and an 80% coinsurance provision. If his first medical expense of the year is a \$600 covered loss, how much will the insurance company pay? \$ 80 2. Given a \$250 annual deductible, a 20% copayment requirement and \$5,000 annual limit on a policy-holder’s coinsurance costs, and a \$250,000 policy limit, in the absence of any prior medical expenses in the current year, how much of a \$27,500 medical bill would the insured have to pay? \$5,250 = Min [5,250; {(27,500 – 250)*0.2 + 250}] 3. A fire destroyed a top-of-the-line barbeque grill that Daniel purchased 4 years ago for \$3,000. Today, the same grill would cost \$4,000. His homeowner’s insurance is subject to a \$500 deductible per incident and reimburses for actual cash value. Furnishings are depreciated on a straight-line basis for 10 years.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern