Entrepreneurship and Small Business Management

Automobile Insurance

If your business uses automobiles, you will need automobile insurance. There are many types of auto insurance, and each provides different coverage or protection. Refer to the following chart for definitions of different insurance types.

1.		Sarah is the principal operator of her car. Her insurance includes 25/100 bodily injury and $25,000 property damage. What is her liability premium?
			A)	$206.40
			B)	$213.20
			C)	$218.80
			D)	$210.30
2.		In problem 1, Sarah's car is in age group A and insurance-rating group 12 (A, 12). She has $50-deductible comprehensive insurance. What is her comprehensive premium?
			A)	$95.20
			B)	$102.40
			C)	$62.00
			D)	$77.60
3.		In problem 2, Sarah also has $50-deductible collision insurance. What is her collision premium?
			A)	$266.80
			B)	$272.40
			C)	$233.20
			D)	$253.20
4.		In problems 1-3, what is Sarah's annual base premium?
			A)	$627.40
			B)	$580.80
			C)	$525.60
			D)	$610.80
5.		In problem 4, Sarah's driver-rating factor is 2.30. What is her annual premium?
			A)	$1,208.88
			B)	$1,443,02
			C)	$1,379.27
			D)	$1,335.84
6.		Tom's annual premium is $2276.91. If he makes 12 equal monthly payments for his insurance, what is the monthly payment?
			A)	$245.20
			B)	$183.40
			C)	$189.74
			D)	$172.33
7.		Joel's annual base premium totals $672.50. His driver-rating factor is 1.7. What is his annual premium?
			A)	$1,106.56
			B)	$1,143.25
			C)	$1,262.90
			D)	$1,072.38
8.		Audrey's insurance includes 100/200 bodily injury and $50,000 property damage. What is her liability premium?
			A)	$272.40
			B)	$258.00
			C)	$252.00
			D)	$266.40
9.		In problem 8, Audrey's car is in age group B and insurance-rating group 11 (B, 11). She has both $50-deductible comprehensive and $50-deductible collision coverage. What is her comprehensive premium?
			A)	$77.60
			B)	$76.20
			C)	$80.22
			D)	$72.60
10.		In problem 9, what is Audrey's collision coverage?
			A)	$253.20
			B)	$222.80
			C)	$241.60
			D)	$233.20
11.		In problems 8-10, what is Audrey's annual base premium?
			A)	$523.70
			B)	$360.81
			C)	$568.80
			D)	$533.90
12.		In problem 11, Audrey's driving-rating factor is 3.9. What is her annual premium?
			A)	$2,218.32
			B)	$2,289.01
			C)	$2,178.49
			D)	$2,091.56
13.		In problem 12, Audrey makes 6 equal payments to pay the annual premium. How much is each of her payments?
			A)	$350.22
			B)	$369.72
			C)	$329.81
			D)	$341.70
14.		Elijah delivers flowers to retail stores. His 13-year-old car is not worth very much so he doesn't carry comprehensive or collision insurance. He does carry 100/300 bodily injury and $50,000 property damage insurance. His rating factor is 2.8. What is his annual premium?
			A)	$264.00
			B)	$720.17
			C)	$690.30
			D)	$739.20
15.		Traci uses her car to deliver newspapers. Her insurance coverage includes 25/100 bodily injury and $25,000 property damage. She has $50-deductible comprehensive insurance, though no collision insurance. Her car is in age group C and rating group 10. What is Traci's annual base premium?
			A)	$484.80
			B)	$320.90
			C)	$246.70
			D)	$280.80
16.		In problem 15, Traci's driver-rating factor is 1.6. What is her annual premium?
			A)	$449.28
			B)	$379.15
			C)	$501.16
			D)	$440.19
17.		Scott uses his car primarily for business. He has $50-deductible comprehensive and $50-deductible collision. His car is classified A, 13. What is his total physical damage premium?
			A)	$108.00
			B)	$287.20
			C)	$395.20
			D)	$410.20
18.		In problem 17, Scott also has 50/100 bodily injury and $100,000 property damage insurance. What is his annual base premium?
			A)	$667.30
			B)	$640.80
			C)	$590.60
			D)	$520.70
19.		In problem 18, Scott's driver-rating factor is 2.2. What is his annual premium?
			A)	$1,400.28
			B)	$1,899.30
			C)	$1,409.76
			D)	$1,448.23
20.		Jean's annual base premium is $740.50. Her driver-rating factor is 3.4. What is her annual premium?
			A)	$2,389.30
			B)	$2,592.10
			C)	$2,457.46
			D)	$2,517.70