FIN 230 Exam I Review Session Assignment Assignment Assignment Assignment Assignment Assignment 1 2 3 4 5 6 Kathy Gu Neal Simons Brian Alvin Bill Schneider PC Wong Eric Lam Homework 1 Review State Farm Car Policy Your Use of Your Car Problem 1 Ecstatically happy after U of I s latest football win you swerve into your driveway really fast Unfortunately you hit your hand carved mailbox It costs 1000 to repair your car and 800 to repair the mailbox Your policy will pay A 0 B 900 C 1600 D 1700 Problem 1 Answer B 900 Collision coverage will cover damages to your car less a 100 deductible 1000 100 900 Damages to your mailbox are not covered b c damages to property owned by an insured are excluded 900 0 900 Problem 2 While driving your car in Mexico 30 5 miles from the U S border you run into a deer that had escaped from a nearby zoo You incur 500 in medical bills and it costs 2500 to repair your car Your policy will pay A 0 B 2400 C 2900 D 3000 E None of the above Problem 2 Answer D 3000 Liability medical payments and physical damages coverages apply in Mexico within 50 miles of the U S border 500 Medical Payments 2500 Comprehensive Hitting an animal is Comprehensive 500 2500 3000 Problem 3 You are driving your friend home after a night out at the bars You cross over the intersection and crash into another car The police officer charges you with a DUI and fines you 1000 The driver of other car wins a bodily injury award of 50 000 His 4 passengers win bodily injury awards of 120 000 80 000 115 000 20 000 It costs 20 000 to repair their car Your friend incurs 30 000 in medical bills and wins a liability award of 40 000 You incur 40 000 in medical bills yourself It costs 800 to repair you car Your policy will pay A 0 B 320 500 C 370 700 D 375 700 E None of the above Problem 3 Answer C 370 700 Bodily Injury Liability Awards 100 000 per person 300 000 per accident limit 50 000 100 000 80 000 100 000 20 000 40 000 390 000 greater than 300 000 limit 300 000 BI Liability Property Damage Liability 100 000 limit 20 000 Medical Payments 25 000 per person 25 000 friend 25 000 yourself 50 000 Collision 800 100 Deductible 700 300 000 20 000 50 000 700 370 700 Problem 4 While your car is parked outside the grocery store a gang smashes your windshield and steal the clothes you just bought at the mall It costs 400 to repair your windshield and your clothes are valued at 500 Your policy will pay A 0 B 300 C 500 D 900 E None of the above Problem 4 Answer E None of the above 400 Comprehensive 400 If loss of clothes and luggage is due to theft your entire car must have been stolen 400 0 400 Problem 5 While driving your car along the Mississippi River you accidentally drive into the river It costs 75 to tow your car to the nearest repair location and 4000 to repair your car You rent a car for 30 a day for 5 days until your car is repaired Your policy will pay A 75 B 4075 C 4200 D 4225 E None of the above Problem 5 Answer B 4075 Emergency Road Service 75 Comprehensive 4000 NO Car Rental and Travel Expenses 75 4000 4075 Homework 2 Review State Farm Car Policy Uninsured Underinsured Problem 1 While driving your car in Utah on vacation you swerve to avoid hitting an oncoming driver driving in the wrong lane and hit a tree The other driver flees the scene and is never identified You incur 30 000 in medical bills It costs 11 000 to repair your car You would be entitled to a bodily injury award of 90 000 against the other drive if he could be found a 35 900 b 36 000 c 100 900 d 101 000 e None of the above Problem 1 Answer Correct answer A You are not entitled to collect anything under uninsured coverage because the driver did not hit you In order to be covered under uninsured motor vehicle coverage a hit and run driver must strike your vehicle Medical payments 25 000 Collision 11 000 100 deductible 10 900 Total 25 000 10 900 35 900 Problem 2 While driving your car in Mexico 40 miles from the U S border you are hit by an uninsured driver You are injured and incur 3 000 in medical bills You are entitled to a bodily injury award of 75 000 against the other driver It also costs 10 000 to repair your car a 0 b 12 900 c 13 000 d 84 900 e None of the above Problem 2 Answer Correct answer B Even though you are within 50 miles of the US border you do not have un der insured coverage in Mexico Only physical damage medical payments and liability coverage applies within 50 miles of the U S border Medical 3 000 in medical coverage Collision 10 000 100 9 900 Total 3 000 9 900 12 900 Problem 3 You are driving your car when you are hit from behind by another driver and seriously injured You incur 5 000 in medical bills and are entitled to a 200 000 bodily injury award against the other driver However the other driver only carries 20 40 15 liability limits and no other coverage a 80 000 b 85 000 c 105 000 d 125 000 e None of the above Problem 3 Answer Correct answer B When you have both un der insured motorist and medical payments coverage in the same accident your medical payments will pay first Any remaining un der insured coverage will pay on top of that Medical 5 000 Underinsured will only pay up to 100 000 including the payments made by the other driver So 100 000 20 000 80 000 Total 5 000 80 000 85 000 Problem 4 You are driving with your friend in your car when you are side swiped by an uninsured driver Both you and your friend incur 30 000 in medical bills and are each entitled to a 200 000 bodily injury award a b c d e 0 50 000 200 000 250 000 None of the above Problem 4 Answer Correct answer D Remember when you have both un der insured motorist and medical payments coverage in the same accident your medical payments will pay first Any remaining un der insured coverage will pay on top of that Medical 25 000 25 000 50 000 Underinsured 100 000 100 000 200 000 Total 50 000 200 000 250 000 Homework 3 Review State Farm Car Policy Your Use of Other Cars Other People s Use of Your Car Other People s Use of Other Cars Brian s Special Rules First decide what type …