Question

Wearever Sash Company provides a car for the use of its salesmen. They wish to purchase bodily injury and property damage insurance in the amount of 100/300/25. If the company has no salesmen under twenty-five years old, what is their annual premium for this insurance?

Answer 1

If there are three salesmen above twenty five years in the company and their insurance amount be assigned as 100, 300, and 25, respectively. The annual premium that the company will be paying is (100 + 300 + 25) x 12 months. Therefore the company's annual premium is 5,100.