1. What would be the total fire insurance premium for Best Seconds if their $837,500 building belongs in structural classification D? The contents are worth $421,300 and they received an area rating of 2. (The rates per $100 are found in the book)
a. $7,255.49
b. $7,680.72
c. $5,126.34
d. $6,587.14
2. At age 29, Wendi purchased a 20-year endowment insurance policy with face value of $230,000. She is now 32 and wants to cancel her policy. Determine the amount of reduced paid-up insurance to which she is entitled.
a. $19,879
b. $17,338
c. $22,310
d. $15,070