Chapter 9 Section 4 NAME:_____________
Define the following:
1.
Liability Insurance
2.
Comprehensive Insurance
3.
Collision Insurance
4.
Deductible Clause
5.
What does 25/100 mean? What does 100/300 mean?
6.
What does the annual base premium depend on? a.
How do we calculate the annual base premium? (formula)
7.
What is the annual premium?
8.
What does the annual premium depend on? a.
How do we calculate the annual premium? (formula)

Chapter 9 Section 4 NAME:_____________
9.
What are some things that the driver-factor depends on? How is the driver factor determined if more than one person drives a car?
Complete the following:
10.
Danny is the principal operator of his vehicle. His driver-rating factor is 2.20. His insurance includes 50/100 bodily injury and $50,000 property damage. His vehicle is in age group A and insurance-rating group 13 (or A, 13). He has $50-deductible comprehensive and $50-deductible collision insurance. What is his annual base premium? What is his annual premium? (Use the figure below)
Property Damage
Limits
$25,000
50,000
100,000
25/50
206.4
212.4
220.8
25/100
218.8
224.8
233.2
Liability Premium
Bodily Injury Limits
50/100
213.2
237.2
245.6
100/200
252
258
266.4
100/300
258
264
272.4
300/300
286.8
293.2
301.2
Coverage
Comprehensive
$50 Deductible
Collision
$50 Deductible
Age
Group
A
B
C
D
A
B
C
10
76.8
65.2
62
59.2
225.6
214
204
Physical Damage Premium
11
81.6
77.6
74
70.4
246
233.2
222.8
12
95.2
90.4
86
82
266.8
253.2
241.6
13
108
102.4
98
93.2
287.2
272.4
260
14
122
115.6
110.4
105.2
307.6
291.6
278.4
D 194.4 212 230 247.6 265.2
STEP 1: Find the annual base premium
Annual base premium = Liability + Comprehensive + Collision
Premium Premium Premium
15
135.6
128.4
122.8
116.8
328
311.2
296.8
282.8
STEP 2: Find the annual premium
Annual Premium = (Annual base premium) x (Driver-Rating Factor)

Chapter 9 Section 4 NAME:_____________
8.
6.
10.
4.
5.
Turn to page 326 and complete the following:
2.