Mr. Sultan had health insurance while he was studying in the UK. He was diagnosed with a significant depressive episode, and he made a claim to the insurance company for the cost of £10,000 for a health pack provided by a gym. The health pack included: 1 year's nutritionist appointments; a nutrition program; meals; 4 personal training sessions; and 1-year free membership at the gym. Mr. Sultan did not read his policy nor he understand the terms and conditions but he thinks that his insurance should cover the gym health pack as a treatment for his depression. Required: Determine whether he can claim the gym expenses under his insurance policy? And justify your answer with reasonable justifications?

Mr. Sultan had health insurance while he was studying in the UK. He was diagnosed with a significant depressive episode, and he made a claim to the insurance company for the cost of £10,000 for a health pack provided by a gym. The health pack included: 1 year's nutritionist appointments; a nutrition program; meals; 4 personal training sessions; and 1-year free membership at the gym. Mr. Sultan did not read his policy nor he understand the terms and conditions but he thinks that his insurance should cover the gym health pack as a treatment for his depression. Required: Determine whether he can claim the gym expenses under his insurance policy? And justify your answer with reasonable justifications?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 46P

See similar textbooks

Similar questions

To improve her body shape Ms. Ganda decided to undergo procedure and sought the services of the Body Beautiful, a clinic operated outside the hospital and owned by Below Medical Center Group Company. Body Beautiful charged Ms. Ganda the amount of P224,000 (inclusive of 12% but exclusive of excise tax) for the service rendered. Ms. Ganda bought residential house for P4,000,000. He paid P1,000,000 down and mortgage back the property as security for the P3,000,000. Based on the information above, how much is the excise tax?
To improve her body shape Ms. Ganda decided to undergo procedure and sought the services of the Body Beautiful, a clinic operated outside the hospital and owned by Below Medical Center Group Company. Body Beautiful charged Ms. Ganda the amount of P224,000 (inclusive of 12% but exclusive of excise tax) for the service rendered. Ms. Ganda bought residential house for P4,000,000. He paid P1,000,000 down and mortgage back the property as security for the P3,000,000. REQUIRED:1) How much is the DST from the mortgage? 2) How much is the Excise tax?
Barbara was driving her vehicle, and her friend Kevin was a passenger. They were starting a one-week visit with Kevin's parents, who live in the same state about 150 miles south of the town where Barbara and Kevin live. Barbara's vehicle is insured under a PAP listing her as the named insured. These are the coverages included in the policy: Coverage A-Liability: $50,000 Each person $100,000 Each occurrence Property Damage: $50,000 Coverage B-Medical Payments: $1,000 Each person Coverage C-Uninsured Motorists: $50,000 Each person $100,000 Each occurrence To lower her premiums, Barbara decided not to carry Coverage D-Damage to Your Auto on her five-year old vehicle. About one hour into the trip, as they were traveling in the southbound lanes of the highway, a northbound vehicle crossed the median and struck Barbara's vehicle. This four-door sedan was operated by Louise, who died at the scene. As part of the accident investigation, it was determined that Louise suffered a heart attack,…
Alex covered his automobile for a total of RO 60,000 with Al Ahlia Insurance and a total of RO 90,000 with Takaful Insurance. An accident occurred, resulting in a loss of RO 48,000. What is the maximum amount Mr. Ali may claim from each insurance company? A) Mr. Ali is eligible for a total of RO 27,000 in Takaful insurance and RO 21,000 in Vision insurance. B) Mr. Ali is eligible for a Takaful insurance claim of RO 28,800 and a Vision insurance claim of RO 19,200. C) Mr. Ali is eligible for a total of RO 30,000 in Takaful insurance and RO 18,000 in Vision insurance. D) Mr. Ali is eligible for RO 24,000 in Takaful and RO 24,000 in Eye coverage.
Roger Orfield had a skiing accident, and the doctor told him he must not work for the next four weeks. Roger earns $3,000 per month. How long must Roger wait before collecting disability insurance? How much will Roger be able to collect? What is the maximum length of time Roger could collect disability insurance if his doctor tells him he is unable to work? Is his disability check taxable?
Zachary Lee has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damageliability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs?a. Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.b. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.c. Zachary’s 18-year-old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Rosa Valencia has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $10,000 for property damage liability that includes coverage for her vehicle, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will her insurance cover in each of the following situations? Will she have any out-of-pocket costs? Rosa loses control when she swerves to miss a dog on the street, running into a parked car and causing $5,300 damage to the unoccupied vehicle and $3,750 damage to her own car. Rosa pulls out in front of another car and causes a serious auto accident, badly injuring three people. The injured parties win lawsuits against her for $35,000 for one individual, and the other two passengers claimed $5,000 each ($10,000 total). Rosa’s 16-year-old daughter borrows her car. She runs off the road when texting while driving and causes $450 damage to the car.
Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?