Author Question: Hartford Corporation insured a building for 400,00 . for one year at a premium rate of 6.50 per ... (Read 70 times)

iveyjurea · **on:** Jun 24, 2018

Hartford Corporation insured a building for 400,00 . for one year at a premium rate of 6.50 per thousand. Six months later the Hartford Corporation sold the building and canceled the policy. The insurance company refunded the remaining half of the premium at the short-rate based on a penalty of 15 of the annual premium. Compute the amount that the six months of insurance cost the Hartford Corporation.

Question 2

Garnet Corporation insured a building for 370,00 . for one year at a premium rate of 6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10 of the annual premium. Compute the amount the insurance company refunded.