Suppose a person is looking for a one-year life insurance policy. They decide on a $208147 policy. This policy costs $268 per year. Suppose the probability the person dies in the year is 0.0004. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places. These have to go into our TI-84 Plus calculator using the 1 varstats L1, L2 method...

According to a recent study, the number of times a person visits a doctor per year follows an approximately normal distribution with a mean of 4.6 visits and a standard deviation of 0.8 visits. A tech company wishes to offer their employees health insurance next year. To find the best health insurance plan, the company randomly selects employees and notes how many times they visited the doctor last year. If the research resulted in a standard error of 0.025 visits, how many employees did they sample?

Ralph has a demand curve for office visits (Qd) to the doctor in a year given by Qd = 20 – (P/10) where P is the price of an office visit for Ralph.

If the list price of an office visit is $50 and Ralph purchases health insurance in which he has a coinsurance rate of 20% (so Ralph pays only $10 for each visit), how many additional office visits at a list price of $50 does Ralph make relative to when he did not have insurance?

The ledger of Skysong Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expenses.

The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 10,200 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest totaling $500 is accrued on the notes payable for the quarter. 4. Supplies on hand total $900. 5. Insurance expires at the rate of $200 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.

Rhoda owns an electronics store that is burglarized during the current year. The burglars destroy the point-of-sale terminal and steal $330 from the cash drawer. The point-of-sale terminal was purchased for $7,580, and its adjusted basis is $3,670. The insurance adjuster estimates that the fair market value of a similar point-of-sale terminal is $6,010. The burglars also steal stereo equipment costing $4,040 that has a retail value of $7,185. In breaking into the store, the burglars break a large glass door that costs Rhoda $535 to replace. Rhoda's deductible loss if the insurance company reimburses her $4,790 is $_____________

An insurance company finds that 0.03% of the population dies of a certain disease each year. The company has insured 100,000 people against death from this disease. Compute the probability that the firm must pay off in three or more cases next year.

A. 0.6266

B. 0.5768

C. 0.4232

D. 0.9910

An automobile insurance company estimates the following loss probabilities for the next year on a $20,000 sports car:

Total Loss: .001

50% Loss: .01

20% Loss: .05

If the company charges $850 annual premium for this car, how much is the company's expected gain per policy?

My professor wants the answer in the table above (if possible). I am unsure on how to answer this.

An insurance company must make payments to a customer of $11 million in one year and $7 million in five years. The yield curve is flat at 6%.

a. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond, what maturity bond must it purchase?

b. What must be the face value and market value of that zero-coupon bond?

You are offered an insurance policy that will pay you and your heirs $25,000 a year forever, with the first cash flow coming 40 years from today. The policy will cost you $130,000 today. If the interest rate is 4%, is this a good deal?