The Flamingo Cab Company of Cougar Creek is interested in purchasing $$250$ deductible collision insurance and full$-$coverage comprehensive insurance to cover its fleet of $10$ taxicabs. As a requirement for the job, all drivers already carry their own liability coverage in the amount of $100/300/100.$ Cougar Creek is rated as territory $2.$ Five of the cabs are $4-$year$-$old Checker Towncars, model class Y$.$ Two of them are $2-$year$-$old Chrysler station wagons, model class R$.$ The remaining three are new Buick sedans, model class C$.$ Because the vehicles are on the road almost $24$ hours a day, they are considered to be very high risk and carry a rating factor of $5\mathrm{.}4.$ They are, however, subject to an $18\%$ multi$-$vehicle fleet discount.

$($a$)$

As the insurance agent for Flamingo Cabs, use Table $19-7$ to calculate the total annual premium $($in $$)$ for the fleet.

$

$($b$)$

When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $$500$ deductible collision and $$100$ deductible comprehensive. Using Table $19-7,$ how much can you save $($in $$)$ Flamingo by using the new coverage? $($Round your answer to the nearest cent.$)$

$ Table $19-1$ Annual Life Insurance Premiums $($per $$1,000$ of Face Value$)$

Term Insurance Permanent Insurance

$5-$Year $10-$Year Whole $20-$Payment $20-$Year

Term Term Life Life Endowment

Age Male Female Male Female Male Female Male Female Male Female

$18$ $ $2\mathrm{.}32$ $ $1\mathrm{.}90$ $ $4\mathrm{.}33$ $ $4\mathrm{.}01$ $$13\mathrm{.}22$ $$11\mathrm{.}17$ $$23\mathrm{.}14$ $$19\mathrm{.}21$ $$33\mathrm{.}22$ $$29\mathrm{.}12$

$192\mathrm{.}381\mathrm{.}964\mathrm{.}424\mathrm{.}1213\mathrm{.}6011\mathrm{.}6824\mathrm{.}4220\mathrm{.}9233\mathrm{.}6830\mathrm{.}04$

$202\mathrm{.}432\mathrm{.}074\mathrm{.}494\mathrm{.}2014\mathrm{.}1212\mathrm{.}0925\mathrm{.}1021\mathrm{.}5034\mathrm{.}4231\mathrm{.}28$

$212\mathrm{.}492\mathrm{.}154\mathrm{.}574\mathrm{.}2914\mathrm{.}5312\mathrm{.}5325\mathrm{.}8322\mathrm{.}1134\mathrm{.}9031\mathrm{.}79$

$222\mathrm{.}552\mathrm{.}224\mathrm{.}644\mathrm{.}3614\mathrm{.}9712\mathrm{.}9626\mathrm{.}4222\mathrm{.}8935\mathrm{.}2732\mathrm{.}40$

$232\mathrm{.}622\mathrm{.}304\mathrm{.}704\mathrm{.}4215\mathrm{.}3913\mathrm{.}4127\mathrm{.}0123\mathrm{.}4735\mathrm{.}7032\mathrm{.}93$

$242\mathrm{.}692\mathrm{.}374\mathrm{.}794\mathrm{.}4715\mathrm{.}9013\mathrm{.}9227\mathrm{.}7424\mathrm{.}2636\mathrm{.}4933\mathrm{.}61$

$252\mathrm{.}772\mathrm{.}454\mathrm{.}854\mathrm{.}5116\mathrm{.}3814\mathrm{.}3828\mathrm{.}4025\mathrm{.}0437\mathrm{.}0234\mathrm{.}87$

$262\mathrm{.}842\mathrm{.}514\mathrm{.}924\mathrm{.}6016\mathrm{.}9114\mathrm{.}7729\mathrm{.}1125\mathrm{.}9637\mathrm{.}6735\mathrm{.}30$

$272\mathrm{.}902\mathrm{.}585\mathrm{.}114\mathrm{.}6917\mathrm{.}2715\mathrm{.}2329\mathrm{.}9726\mathrm{.}8338\mathrm{.}2335\mathrm{.}96$

$282\mathrm{.}982\mathrm{.}645\mathrm{.}184\mathrm{.}7717\mathrm{.}7615\mathrm{.}6630\mathrm{.}6827\mathrm{.}5438\mathrm{.}9636\mathrm{.}44$

$293\mathrm{.}072\mathrm{.}705\mathrm{.}234\mathrm{.}8418\mathrm{.}1216\mathrm{.}1831\mathrm{.}5228\mathrm{.}0939\mathrm{.}4237\mathrm{.}21$

$303\mathrm{.}142\mathrm{.}785\mathrm{.}304\mathrm{.}9318\mathrm{.}5416\mathrm{.}7132\mathrm{.}1528\mathrm{.}7340\mathrm{.}1937\mathrm{.}80$

$353\mathrm{.}432\mathrm{.}926\mathrm{.}425\mathrm{.}3524\mathrm{.}1922\mathrm{.}5237\mathrm{.}1033\mathrm{.}1243\mathrm{.}6739\mathrm{.}19$

$404\mathrm{.}233\mathrm{.}907\mathrm{.}146\mathrm{.}2427\mathrm{.}2125\mathrm{.}4042\mathrm{.}2736\mathrm{.}2948\mathrm{.}2042\mathrm{.}25$

$456\mathrm{.}125\mathrm{.}188\mathrm{.}817\mathrm{.}4033\mathrm{.}0229\mathrm{.}1648\mathrm{.}7339\mathrm{.}0851\mathrm{.}1146\mathrm{.}04$

$509\mathrm{.}728\mathrm{.}7314\mathrm{.}199\mathrm{.}1137\mathrm{.}9433\mathrm{.}5756\mathrm{.}3144\mathrm{.}1658\mathrm{.}4949\mathrm{.}20$

$5516\mathrm{.}2512\mathrm{.}8222\mathrm{.}0313\mathrm{.}1745\mathrm{.}8337\mathrm{.}0261\mathrm{.}0949\mathrm{.}4071\mathrm{.}2853\mathrm{.}16$

$6024\mathrm{.}1019\mathrm{.}4337\mathrm{.}7024\mathrm{.}8253\mathrm{.}9842\mathrm{.}2470\mathrm{.}4352\mathrm{.}5579\mathrm{.}1558\mathrm{.}08$ Table $19-3$ Nonforfeiture Options $($per $$1,000$ of Face Value Issued to a Woman at Age $20)$

Whole Life Options $20-$Payment Life Options $20-$Year Endowment Options

$123123123$

End

of

Year

Cash

Value

Reduced

Paid$-$Up

Insurance

Extended

Term Cash

Value

Reduced

Paid$-$Up

Insurance

Extended

Term Cash

Value

Reduced

Paid$-$Up

Insurance

Extended

Term

Years Days Years Days Years Days

$3$ $ $11$ $ $25217$ $ $29$ $ $904217$ $ $39$ $ $977132$

$532649237321214869123319204$

$75499131421013672315218638126310$

$109818617541914963020632451232117$

$15157314212183227893414264779437350$

$2026249125775051,000-$Life$-1,0001,000-$Life