The annual insurance premium for a policy holder was $837 . The policy holder must pay a 18% surcharge because of an accident. What is the new annual premium as a result of the accident?

A) $\$990.66$
B) $\$977.66$
C) $\$855.00$
D) $\$987.66$
E) $\$991.66$

First, find the amount of the surcharge by multiplying the original premium by the percentage:

$837 x 0.18 = $150.66

Then add the surcharge amount to the original premium:

$837 + $150.66 = $987.66

Therefore, the new annual premium is $987.66, which is answer choice D.