What would be the price of fair insurance for a $20,000 motor home for one year, assuming that during that year there is a .02% chance that it will be destroyed in an accident, leaving a $3,000 salvage value and no chance of any partial loss? Assume that the owner keeps the salvage value.

Answer rating: 100% (QA)

Initial value of the motor home 20000 Chance of the motor ... View the full answer