Author Question: Martin Insurance Company issued insurance policies on buildings A and B in the same area for one ... (Read 110 times)

mpobi80 · **on:** Jun 24, 2018

Martin Insurance Company issued insurance policies on buildings A and B in the same area for one year at a premium rate of 5.50 per thousand. Building A was insured for 75,000 . Building B was insured for 83,000 . Martin Insurance Company had a short-rate refund policy based on a penalty of 10 of the annual premium. At the end of the second month, building A was sold and the policy canceled by the building owner. At the end of the sixth month, Martin Insurance Company canceled the insurance on building B. Compute the amount Martin Insurance Company earned altogether by insuring buildings A and B.

Question 2

Allied Industries, Inc insured an office building for 390,00 . for one year at a premium rate of 7.10 per thousand. At the end of nine months, the insurance company canceled the policy. Compute the amount of the refund received by Allied Industries, Inc