The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide between January and September 2008. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each. Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. What is the value of the claims?

Question

Quizplus · Accepted Answer

The value of the claims is calculated by multiplying the number of boats attacked (10) by the insurance amount per boat ($100,000), which equals $1,000,000.

The International Maritime Bureau Said the Waters Off Somalia Are