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Faro owns and operates seven (7) residences located throughout Canada. The square footage and insurance premium rates are provided as follows: Residence Square Footage Insurance

Faro owns and operates seven (7) residences located throughout Canada. The square footage and insurance premium rates are provided as follows:

Residence Square Footage Insurance Premium Rate
Alida 67,000 0.213
Donalda 80,000 0.221
Batiscan 90,000 0.210
Mayo 100,000 0.225
Bringham 110,000 0.209
Heward 90,000 0.227
Teulon 120,000 0.210

The CRO is recommending an allocation of the annual commercial general liability insurance premium being $1,016,211.

a) Determine the allocation of insurance premium based on adjusted square footage. Show your calculations

b) Determine the allocation of insurance premium based on three-years' cumulative claims experience limited to $50,000 per occurrence. Show your calculations

c) Determine the allocation of insurance premium based on exposure (limited to 75%) and experience (limited to 25%). Show your calculations

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