Question
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To determine the allocation of insurance premium based on adjusted square footage we first need to calculate the total square footage of all residen...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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