Sunshine was transferred to another city and must sell her home. She renewed her homeowner's policy effective 11 months ago, with an annual premium of $902.00. How much of a refund will she receive based on Table 19-5 in your text?

Question

Quizplus · Accepted Answer

The policy was renewed 11 months ago, so Sunshine has paid for 11/12 of the annual premium. She is entitled to a refund of 1/12 of the annual premium, which is $902.00 / 12 = $75.17. However, she has already used 11/12 of the coverage, so she will only receive a refund of $75.17 - $35.07 = $40.10.

Sunshine Was Transferred to Another City and Must Sell Her