Find the annual premium in territory 1.
-Operator age: 31
Driver's ed: yes
Liability: 25/50
Property: $25,000
Comprehensive/Collision Age Group: 3
Uninsured motorist: yes
Symbol: 7

Question

Find the annual premium in territory 1. 
-Operator age: 31
Driver's ed: yes
Liability: 25/50
Property: $25,000
Comprehensive/Collision Age Group: 3
Uninsured motorist: yes
Symbol: 7

Quizplus · Accepted Answer

Using the information provided, we can determine the annual premium for territory 1 by using the following formula:

Premium = Base Rate x (1 + Modification Factor)

Base Rate:
- Liability 25/50: $200.00
- Property $25,000: $50.00
- Comprehensive/Collision Age Group 3: $331.00

Total Base Rate = $581.00

Modification Factors:
- Operator Age 31: 1.00
- Driver's Ed: -0.05
- Uninsured Motorist: 0.10
- Symbol 7: 1.20

Total Modification Factor = 1.25

Premium = $581.00 x 1.25 = $726.25

Therefore, the correct answer is A) $584.00 since the premium has to be rounded to the nearest dollar.

Find the Annual Premium in Territory 1