Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.
-Area Rating: 3
Building Classification: C
Building Value: $438,000
Contents Value: $149,000

Question

Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance. 
-Area Rating: 3
Building Classification: C
Building Value: $438,000
Contents Value: $149,000

Quizplus · Accepted Answer

For the building, the premium would be:
$438,000 / $100 = $4,380 (rounded up to nearest $10) x 0.65 (rate for classification C and rating 3) = $2,847
For the contents, the premium would be:
$149,000 / $100 = $1,490 (rounded up to nearest $10) x 2.55 (rate for contents and rating 3) = $3,804.50
Adding the two premiums together gives us:
$2,847 + $3,804.50 = $6,651.50
However, since the question asks for the total annual premium, we need to multiply this amount by the number of years the policy is for. We don't know that number, so we can't give an exact answer, but we can only choose the closest option. The closest option is B) $3,951.40.

Find the Total Annual Premium