Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.) ****TABLE ATTACHED**** Rating of area Class Building Contents Total premium cost 3 B $90,000 $40,000
Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.) ****TABLE ATTACHED**** Rating of area Class Building Contents Total premium cost 3 B $90,000 $40,000
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
Problem 1PS
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Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.)
****TABLE ATTACHED****
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Transcribed Image Text:**Table 20-3: Fire Insurance Rates per $100 of Coverage for Buildings and Contents**
This table provides the fire insurance rates in dollars per $100 of coverage, categorized by classification of building and rating of area.
**Classification of Building:**
- **Class A**
- **Building Rates:**
- Rating 1: $0.28
- Rating 2: $0.33
- Rating 3: $0.41
- **Contents Rates:**
- Rating 1: $0.35
- Rating 2: $0.47
- Rating 3: $0.50
- **Class B**
- **Building Rates:**
- Rating 1: $0.41
- Rating 2: $0.50
- Rating 3: $0.61
- **Contents Rates:**
- Rating 1: $0.54
- Rating 2: $0.60
- Rating 3: $0.65
**Explanation:**
- The table is divided into two main classifications of buildings: Class A and Class B.
- Each classification has separate columns for the insurance rates of buildings and the contents within those buildings.
- The rates vary according to the "Rating of area," which ranges from 1 to 3, with each rating having a distinct rate for both building and content coverage.
- The rates are represented in dollar amounts, indicating the cost per $100 of insurance coverage.
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