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(a)As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in $) for the fleet. $     (b)When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19-7, how much can you save (in $) Flamingo by using the new coverage? (Round your answer to the nearest cent.) $

(a)As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in $) for the fleet. $     (b)When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19-7, how much can you save (in $) Flamingo by using the new coverage? (Round your answer to the nearest cent.) $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The Flamingo Cab Company of Cougar Creek is interested in purchasing $250 deductible collision insurance and full-coverage comprehensive insurance to cover its fleet of 10 taxicabs. As a requirement for the job, all drivers already carry their own liability coverage in the amount of 100/300/100. Cougar Creek is rated as territory 2. Five of the cabs are 4-year-old Checker Towncars, model class Y. Three of them are 2-year-old Chrysler station wagons, model class R. The remaining two are new Buick sedans, model class C. Because the vehicles are on the road almost 24 hours a day, they are considered to be very high risk and carry a rating factor of 5.4. They are, however, subject to an 18% multi-vehicle fleet discount.
 
(a)As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in $) for the fleet.
$  
 
(b)When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19-7, how much can you save (in $) Flamingo by using the new coverage? (Round your answer to the nearest cent.)
$  
TABLE 19-7 Motor Vehicle Insurance Annual Premiums-Collision and Comprehensive Rates Territories 1 and 2 Territories 3 and 4 Collision Comprehensive Collision Comprehensive Model Vehicle $250 $500 Full $100 $250 $500 Full $100 Class Age Deductible Deductible Coverage Deductible Deductible Deductible Coverage Deductible A-G 0-1 $89 $81 $63 $59 $95 $88 $67 $61 2–3 87 79 60 57 93 84 63 58 4-5 86 77 58 54 89 81 60 57 6+ 84 76 55 50 86 78 57 52 H-L 0–1 96 92 78 71 104 95 83 75 2–3 93 89 76 68 101 90 80 72 4–5 89 85 74 66 96 87 78 68 6+ 86 81 70 64 92 84 74 66 М-R 0–1 108 104 86 83 112 106 91 88 2–3 104 101 83 79 109 104 88 82 4-5 100 98 79 75 104 101 84 77 6+ 94 90 75 71 100 96 80 74 S-Z 0–1 120 115 111 108 124 116 119 113 2–3 116 112 106 104 121 114 115 109 4-5 111 107 101 99 116 110 111 106 6+ 108 103 98 96 111 107 108 101
Transcribed Image Text:TABLE 19-7 Motor Vehicle Insurance Annual Premiums-Collision and Comprehensive Rates Territories 1 and 2 Territories 3 and 4 Collision Comprehensive Collision Comprehensive Model Vehicle $250 $500 Full $100 $250 $500 Full $100 Class Age Deductible Deductible Coverage Deductible Deductible Deductible Coverage Deductible A-G 0-1 $89 $81 $63 $59 $95 $88 $67 $61 2–3 87 79 60 57 93 84 63 58 4-5 86 77 58 54 89 81 60 57 6+ 84 76 55 50 86 78 57 52 H-L 0–1 96 92 78 71 104 95 83 75 2–3 93 89 76 68 101 90 80 72 4–5 89 85 74 66 96 87 78 68 6+ 86 81 70 64 92 84 74 66 М-R 0–1 108 104 86 83 112 106 91 88 2–3 104 101 83 79 109 104 88 82 4-5 100 98 79 75 104 101 84 77 6+ 94 90 75 71 100 96 80 74 S-Z 0–1 120 115 111 108 124 116 119 113 2–3 116 112 106 104 121 114 115 109 4-5 111 107 101 99 116 110 111 106 6+ 108 103 98 96 111 107 108 101
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