534 Chapter 13 Insurance and Risk Management
- Calculate the semiannual premium for a 28-year-old unmarried woman who lives in Region A, commutes 35 miles, and
qualifi es for the long-term customer discount. - Calculate the semiannual premium for a 68-year-old married man who lives in Region B, commutes 20 miles, and
qualifi es for the long-term customer discount. - Calculate the semiannual premium for a 55-year-old divorced man who lives in Region B and commutes 2 miles.
- What percent over the basic rate does a 17-year-old male who has taken driver training pay?
- Suppose that Affi liated Benevolent Mutual offers a 5% discount to customers who also have a homeowner’s insurance
policy with the company. John is a 33-year-old married man living in Region B who commutes 9 miles each day. He
qualifi es for the long term-customer discount, and also has his homeowner’s policy with the company. Calculate his
semiannual rate.
Use the following information for Exercises 15 to 18. Affi liated Benevolent Mutual increases its rates for customers who have
been involved in traffi c accidents, on the basis of the number of “points” charged to the customer’s license. These extra
charges are given in the table below:
Number of points Semiannual premium increases by1–2 No increase
3 25%
4–5 50%
6–7 75%
8–9 100%
10 or more Policy will be cancelled- Calculate the semiannual premium for an unmarried male aged 33 living in Region A, who commutes 16 miles, and
who has 4 points on his license. - Calculate the semiannual premium for a married 27-year-old woman living in Region C with no daily commute who has
8 points on her license. - Calculate the semiannual premium for an unmarried 20-year-old woman living in Region B with a 12-mile commute
and 10 points on her license. - Calculate the semiannual premium for a married 64-year-old man who lives in Region A, has no daily commute,
qualifi es for the long-term customer discount, and has 7 points on his license.
C. Deductibles, Coinsurance, and Coverage Limits
- Teddy has a renter’s insurance policy with a $350 deductible. Someone broke into his apartment and stole
computer equipment worth $2,400. This theft is covered by his policy. How much will his insurance company pay
on this claim?