A roofing contractor needs commercial auto insurance for 3 trucks valued at $85,000 total. If the premium rate is $1,200 per $10,000 of coverage, what is the annual premium for full replacement coverage?
Correct Answer
C) $10,200
Coverage needed = $85,000. Premium units = $85,000 ÷ $10,000 = 8.5 units. Premium = 8.5 × $1,200 = $10,200.
Why This Is the Correct Answer
Coverage needed = $85,000. Premium units = $85,000 ÷ $10,000 = 8.5 units. Premium = 8.5 × $1,200 = $10,200.
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A contractor has 8 employees with a total weekly payroll of $6,400. The workers' compensation premium rate is $2.50 per $100 of payroll. What is the weekly workers' compensation premium?
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