Midlands Insurance has 100 policyholders. It expects that this year's losses for all of its policyholders will total $111,000
The predicted expenses of operating the insurance pool are $46,000, expected investment earnings are $20,000, and the actuary determines that there is no need to charge for a risk reserve this year. What should the premium for each of Midland's 100 policyholders be?
A) $1,110
B) $1,370
C) $1,570
D) $1,770
B
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Which one of the following mistakes voids a contract?
A) Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. B) Sally and Wacky had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was Sally's. C) Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. D) Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. E) When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat.
The main attraction of outside specialists is their variety, inspiration and excitement they can bring to a training program.
a. true b. false