Calculate the Short-Term Premium and Refund for the Policy Canceled

question 13

Short Answer

Calculate the short-term premium and refund for the policy canceled by the insured. $$\begin{array} { l l l l } \text { Annual } & \text { Canceled } & \text { Short-term } \\\underline{\text { Premium }} &\underline{ \text { After } }& \underline { \text { Premium } } & \underline { \text { Refund } } \\\$ 550 & 4 \text { months } & &\end{array}$$

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Definitions:

Collusion

Collusion is a non-competitive, secret, and sometimes illegal agreement between competitors to manipulate market conditions by coordinating prices, production, or marketing strategies.

Oligopoly

An economic scenario in which a few large companies control the majority of the industry, resulting in minimal competition and possibly increased prices for buyers.

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Cartel

A group of independent market participants who collude to raise prices, limit supply or otherwise manipulate market conditions in their favor.