Calculate the Annual Premium for the Following Motor Vehicle Insurance

question 5

Short Answer

Calculate the annual premium for the following motor vehicle insurance policy. $$\begin{array} { l l l l l l l } \text { Territory } & \begin{array} { l } \text { Driver } \\\text { Class }\end{array} & \begin{array} { l } \text { Bodily } \\\text { Injury }\end{array} & \begin{array} { l } \text { Prop. } \\\text { Damage }\end{array} & \begin{array} { l } \text { Model } \\\text { Class }\end{array} & \begin{array} { l } \text { Vehicle } \\\text { Age }\end{array} & \begin{array} { l } \text { Comp. } \\\text { Deduct. }\end{array} \\\hline 4 & 1 & 15 / 30 & 25 & \mathrm {~N} & 2 & \text { Full } \\&&& & &&\text { Coverage }\end{array}$$ $$\begin{array} { l l l } \text { Rating } & \text { Coll. } & \text { Annual } \\\text { Factor } & \text { Deduct. } & \text { Premium } \\\hline 3 & \$ 500 &\end{array}$$

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Definitions:

Mutual-Benefit Bailment

A contractual agreement where both the bailor and bailee receive benefits from the arrangement of temporarily transferring personal property.

Financing Statement

A document filed to give public notice of a security interest in collateral, providing information about the debtor, secured party, and collateral.

Proceeds

The amount of money received from a transaction, especially after selling an asset or completing a deal.

Uniform Commercial Code

A codification of the laws governing commercial transactions in the United States, designed to make interstate commerce more efficient.