Determine the amount of reduced paid-up insurance

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Reference no: EM131346196

1. What would be the total fire insurance premium for Best Seconds if their $837,500 building belongs in structural classification D? The contents are worth $421,300 and they received an area rating of 2. (The rates per $100 are found in the book)

a. $7,255.49

b. $7,680.72

c. $5,126.34

d. $6,587.14

2. At age 29, Wendi purchased a 20-year endowment insurance policy with face value of $230,000. She is now 32 and wants to cancel her policy. Determine the amount of reduced paid-up insurance to which she is entitled.

a. $19,879

b. $17,338

c. $22,310

d. $15,070

Reference no: EM131346196

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