Asked by vanilson baptista on May 07, 2024
Verified
Garnet Corporation insured a building for $370,000 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.
Short-rate Refund
A method of calculating the refund amount a policyholder receives if they cancel their insurance policy before it expires, which may include a penalty.
Premium Rate
The rate charged for an insurance policy, reflecting the cost of coverage.
- Investigate and quantify the monetary returns and costs due to changes and cancellations of insurance coverages.
- Investigate the monetary ramifications of providing insurance for assets across multiple valuations and the grasp of short-rate refund regulations.
Verified Answer
JC
Learning Objectives
- Investigate and quantify the monetary returns and costs due to changes and cancellations of insurance coverages.
- Investigate the monetary ramifications of providing insurance for assets across multiple valuations and the grasp of short-rate refund regulations.