Faro owns and operates seven (7) residences located throughout Canada. The square footage and insurance premium rates
Question:
Faro owns and operates seven (7) residences located throughout Canada. The square footage and insurance premium rates are provided as follows:
Residence | Square Footage | Insurance Premium Rate |
Alida | 67,000 | 0.213 |
Donalda | 80,000 | 0.221 |
Batiscan | 90,000 | 0.210 |
Mayo | 100,000 | 0.225 |
Bringham | 110,000 | 0.209 |
Heward | 90,000 | 0.227 |
Teulon | 120,000 | 0.210 |
The CRO is recommending an allocation of the annual commercial general liability insurance premium being $1,016,211.
a) Determine the allocation of insurance premium based on adjusted square footage. Show your calculations
b) Determine the allocation of insurance premium based on three-years' cumulative claims experience limited to $50,000 per occurrence. Show your calculations
c) Determine the allocation of insurance premium based on exposure (limited to 75%) and experience (limited to 25%). Show your calculations
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman