Exam DISC-DA Practice Question 5
Study guide: Exam DISC-DA
On January 1, 2025 an insurer writes an annual personal auto policy covering one car for $1,200 (1.00 car-year). The insured cancels on October 1, 2025. Premium and exposure are earned evenly by month, and the policy database records transactions rather than overwriting records. Which records does the database hold for this policy?
- A) One record of 0.75 car-years and $900, replacing the original record
- B) Two records: +1.00 car-year and +$1,200, then -0.75 and -$900
- C) Two records: +1.00 car-year and +$1,200, then -0.25 and -$300
- D) Two records: +1.00 car-year and +$1,200, then -0.25 and -$1,200
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