Actuarial Notes

Exam DISC-RM Practice Question 409

Study guide: Exam DISC-RM

A household insures one car with a base premium of $900 and a vehicle relativity of 1.10. The parent drives it nearly every day (driver relativity 0.95), and the 16-year-old drives it occasionally (driver relativity 2.00). The insurer rates each car on the highest-risk driver in the household. What is the car's premium?

  • A) $940.50
  • B) $990.00
  • C) $1,881.00
  • D) $1,980.00

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