An individual purchases a homeowners policy with an 80% coinsurance clause. The home is insured for 150,000. The home was worth 180,000 on the day the policy was purchased. Lightning causes 20,000 worth of damage. On the day of the storm the home is worth 250,000.

Calculate the benefit payment the individual receives from the policy.

• 15,000
• 16,000
• 17,500
• 18,000
• 20,000

A company purchases a commercial insurance policy with a property policy limit of 70,000. The actual value of the property at the time of a loss is 100,000. The insurance policy has a coinsurance provision of 80% and a 200 deductible, which is applied to the loss before the limit or coinsurance are applied. A storm causes damage in the amount of 20,000.

Calculate the insurance company’s payment.

• 15,840
• 16,000
• 17,300
• 17,325
• 19,800

Individual 1 has an automobile insurance policy with the ABC Insurance Company featuring 200,000 of third-party liability coverage (bodily injury/property damage) and a 1,000 deductible for collision coverage. Individual 1 is at fault for an accident that injures Individual 2 who is insured by XYZ Insurance Company. Individual 1 is sued by Individual 2 for these injuries. The court orders Individual 1 to pay 175,000 to Individual 2. Other expenses incurred are:

1. Legal fees to ABC on behalf of Individual 1: 45,000
2. Collision costs to repair Individual 1’s car: 20,000

Calculate the total amount ABC pays for this occurrence.

• 175,000
• 195,000
• 200,000
• 219,000
• 239,000

An individual health insurance policy issued by Company X has a 2,000 deductible, 70% coinsurance, and a 5,000 out of pocket expense maximum that includes the deductible.

While the policy is effective, a policyholder incurs 18,500 of billed charges from a single provider for covered services. This provider is contracted with Company X to provide a 40% discount on all covered services.

No other charges are incurred by the policyholder.

Calculate Company X’s payment to the provider.

• 3,780
• 4,100
• 4,620
• 6,100
• 6,370