Gary purchased a Personal Auto Policy (PAP) that included collision coverage. Gary lost control of his vehicle on an icy road. He slid across the center line into oncoming traffic. Another vehicle hit his car, causing severe damage to it. Ignoring any deductible, what is the insurer’s liability for damage to Gary’s car?

Ann is considering the purchase of a life insurance policy with these characteristics: flexible premium payments, the insurance and savings components are separate, the interest rate credited to the cash value is tied to a changing market interest rate but a minimum interest rate is guaranteed, and a monthly administrative fee is charged. Ann is considering buying

Which of the following statements about yearly renewable term insurance is (are) true?I.It requires evidence of insurability for renewal.II.It is most appropriate when an insured needs lifetime protection.

Kevin has an individual disability income policy that his insurer agrees to keep in force until age 60. However, the company has the right to increase the premium each year for the underwriting class in which Kevin has been placed. Which renewal provision is found in Kevin’s policy?

When using the needs approach, several “special needs” should be considered. One special need is money to cover unexpected events, such as major car repairs, dental bills, or home repairs. Money set aside for this purpose is called a(n)

Bill is attempting to determine how much life insurance to purchase. He has two dependent children and his wife does not work outside of the home. An advisor suggested that Bill should consider Social Security benefits when doing his life insurance planning. One concern in this regard is the period after Social Security benefits to a widow terminate until they resume again. This period is called the

Which of the following statements is (are) true concerning benefit payments under long-term care insurance? I.Expense-incurred policies pay for actual charges up to a specified daily limit. II.Per diem policies pay a specified daily benefit regardless of the charges incurred.

Which of the following statements is (are) true concerning benefit payments under long-term care insurance? I.Expense-incurred policies pay for actual charges up to a specified daily limit. II.Per diem policies pay a specified daily benefit regardless of the charges incurred.

Tom and Nancy Boyle provide financial support for their two children. In addition, they provide financial support for Tom’s aged father and Nancy’s aged mother. The Boyle family can be described as a

John has an auto which is covered for collision losses subject to a $250 deductible. Kate’s auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate’s car because his car is in the shop for repairs?