Determine the annual insurance premium for 25/50 liability
insurance for a driver having a rating factor of 1.85 if the base
premium is $92.
a. $192
b. $75
c. $170.20
d. $163.40
The formula for calculating the annual insurance premium is:
annual premium = base premium x liability factor x rating factor
In this case, the liability factor is 25/50, which means that the policy covers $25,000 per person and $50,000 per accident for bodily injury liability.
So, we can calculate the annual premium as:
annual premium = $92 x 25/50 x 1.85
annual premium = $92 x 0.5 x 1.85
annual premium = $85.30
Therefore, the answer is not listed among the choices provided.