1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80%coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 torepair. What compensation will the insurance company pay?2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy forSandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage forher liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to theliability coverage, she purchased comprehensive and collision insurance with a $250deductible on comprehensive and a $500 deductible on collision.TABLE 19-5Annual Automobile Liability Insurance PremiumsTerritory 1Territory 2Liability LimitsBADGOODОССGOODОССBAD50/100/50385600846354552778100/300/100425682961391627884250/500/2504607501036423690953500/1000/50053084312084887761111GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy"Bodily injury maximum for one person/Total bodily injury coverage per accident/Property damageTABLE 19-6Annual Auto Insurance Premium Rates for Comprehensive and CollisionTerritory 1ComprehensiveCollision$0 Deductible$1,000 DeductibleBADModelVehicle$250 Deductible$500 DeductibleClassAgeGOODОССBADGOODОССBADGOODОССBADGOODОСС10–15849341129393628759535855127947175311262-3520831100535055967644971810743966339464-53976357682674275163966339463495578336+3745987232524024863325307932924676980-1502803971338540653503804120244370810582–34477158643014815814176679983675878794-53425466602303674443675878783235177736+32151462121634641829747470926141862430-1472755913318508614478764114242167210062-34206728122834525463926279383455528264-53215136212163454173425478183014817206+302483584203325393277442661244389582Territory 2ComprehensiveCollisionModelVehicle$0 Deductible$250 Deductible$500 Deductible$1,000 DeductibleClassAgeGOODOCCBADGOODOCCBADGOODОССBADGOODОССBAD10-1514822994346553668492787117743369310362-34577328843084925944136619883645828704-53495596762353764543645828713215137676+3295266362213544273054887302694306420–144270785429747557446373911064076519742-33936297602654235113846149183385408084-53014815812023233913385408072974757116+28345254719030436827343665324038457530–141566480328044754044070210513876199252-33705917152493984813615778633185087604-52834525461903043673155037522774436626+266425514179286346255407608224358536GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy

Question

1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80%coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 torepair. What compensation will the insurance company pay?2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy forSandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage forher liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to theliability coverage, she purchased comprehensive and collision insurance with a $250deductible on comprehensive and a $500 deductible on collision.TABLE 19-5Annual Automobile Liability Insurance PremiumsTerritory 1Territory 2Liability LimitsBADGOODОССGOODОССBAD50/100/50385600846354552778100/300/100425682961391627884250/500/2504607501036423690953500/1000/50053084312084887761111GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy&#34;Bodily injury maximum for one person/Total bodily injury coverage per accident/Property damageTABLE 19-6Annual Auto Insurance Premium Rates for Comprehensive and CollisionTerritory 1ComprehensiveCollision$0 Deductible$1,000 DeductibleBADModelVehicle$250 Deductible$500 DeductibleClassAgeGOODОССBADGOODОССBADGOODОССBADGOODОСС10–15849341129393628759535855127947175311262-3520831100535055967644971810743966339464-53976357682674275163966339463495578336+3745987232524024863325307932924676980-1502803971338540653503804120244370810582–34477158643014815814176679983675878794-53425466602303674443675878783235177736+32151462121634641829747470926141862430-1472755913318508614478764114242167210062-34206728122834525463926279383455528264-53215136212163454173425478183014817206+302483584203325393277442661244389582Territory 2ComprehensiveCollisionModelVehicle$0 Deductible$250 Deductible$500 Deductible$1,000 DeductibleClassAgeGOODOCCBADGOODOCCBADGOODОССBADGOODОССBAD10-1514822994346553668492787117743369310362-34577328843084925944136619883645828704-53495596762353764543645828713215137676+3295266362213544273054887302694306420–144270785429747557446373911064076519742-33936297602654235113846149183385408084-53014815812023233913385408072974757116+28345254719030436827343665324038457530–141566480328044754044070210513876199252-33705917152493984813615778633185087604-52834525461903043673155037522774436626+266425514179286346255407608224358536GOOD = good credit; OCC = occasional payments past 30 days; BAD = judgments, collection, bankruptcy

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1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80% coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 to repair. What compensation will the insurance company pay?