HW 3 - a. No, the group health insurance plan will not pay...

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BARSHA SHRESTHA FIN 444 Homework: 3 Chapter 13: Application Question: 4 a. No, she doesn’t have to report the 50,000 as taxable income because there is no interest in “Lump Sum”. b. No, the increase in the cash value doesn’t have to be reported unless, the contract is terminated with a policy gain. c. No, life insurance premium is not tax-deductible expense. d. No, she doesn’t have to report the hundred $20 dollar as taxable income. Chapter 15: Application question: 4 a. He will receive 2000 per month, if he is totally disabled, then in 4 month he will receive 3x2000= 6000. b. Jeff will receive 2200 monthly because before accident he used to earn $3000 per month now he earns $200 per month. His income reduces by 93.33%, which qualities his for total disability paid, for this reason he will receive 2000 per month from his policy and 200 per month will he earn. Chapter 16: Application Question: 4
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Unformatted text preview: a. No, the group health insurance plan will not pay if the surgery because his condition for 12 month for preexisting had not completed. b. Yes, my answer will change it the operation occur in 18 month after Jason was hired because after 12 month his preexisting condition with be given credit. c. No, the new group health insurance plan cannot exclude coverage of the medical condition because Jason has already completed the condition of 12 month, even though he lost his first job and join another job as accountant, he has not exceeded 63-days gap. So, the insurer must give credit for previous coverage of insurance. Chapter 17: Application Question: 5 a. Gross earning= $120, 000 and after deducting allowance and one half of the SS his net earning = $ 80,000 (20,000/80,000=25%) a. He cant add his brother in law in his plan because he is only 20 years old and he has to wait 2 year....
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This note was uploaded on 06/10/2010 for the course FINANCE 444 taught by Professor Rejda during the Spring '10 term at National University of Singapore.

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HW 3 - a. No, the group health insurance plan will not pay...

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