For a new life insurance product, the Nordlight Insurance Company set the following annual premium rates for each risk class $1.80 per $1,000 of coverage for preferred risks $3.20 per $1,000 of coverage for standard risks $4.00 per $1,000 of coverage for substandard risks Holly Elana has applied for $100,000 of coverage under this new product. Ms. Elana is a proposed insured who represents an average level of risk. This information indicates that Ms. Elana's annual premium amount will be $180 $300 $320
For a new life insurance product, the Nordlight Insurance Company set the following annual premium rates for each risk class $1.80 per $1,000 of coverage for preferred risks $3.20 per $1,000 of coverage for standard risks $4.00 per $1,000 of coverage for substandard risks Holly Elana has applied for $100,000 of coverage under this new product. Ms. Elana is a proposed insured who represents an average level of risk. This information indicates that Ms. Elana's annual premium amount will be $180 $300 $320
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:For a new life insurance product, the Nordlight Insurance Company set the following annual premium rates for each risk
class
$1.80 per $1,000 of coverage for preferred risks
$3.20 per $1,000 of coverage for standard risks
$4.00 per $1,000 of coverage for substandard risks
Holly Elana has applied for $100,000 of coverage under this new product. Ms. Elana is a proposed insured who represents
an average level of risk. This information indicates that Ms. Elana's annual premium amount will be
$180
$300
$320
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