Applied Math: Chapter 9 Test

Front

What is the driver-rating factor in auto insurance, and how does it affect premiums?

Back

The driver-rating factor is a numerical value assigned to a driver based on their driving history, age, and other risk factors. A higher driver-rating factor typically results in higher insurance premiums.

Front

How do you calculate the annual premium for auto insurance?

Back

The annual premium is calculated based on various factors including the driver-rating factor, age, insurance coverage limits, and the vehicle's insurance-rating group.

Front

What does 50/100 bodily injury coverage mean in auto insurance?

Back

50/100 bodily injury coverage means that the insurance will pay up to $50,000 for injuries to one person and up to $100,000 for injuries to multiple people in an accident.

Front

What is the significance of the property damage coverage limit in auto insurance?

Back

Property damage coverage limits indicate the maximum amount the insurance will pay for damages caused to another person's property in an accident.

Front

How do you determine the dealer's cost of a car?

Back

The dealer's cost can be estimated by calculating 91% of the base price and 87.5% of the options price, then adding the destination charge.

Front

What is the formula to find the sticker price of a car?

Back

The sticker price is the total of the base price, options, and any additional charges such as destination fees.

Front

What factors influence the annual premium for a driver like Raven Sandler?

Back

Factors include the driver's rating factor, age group, insurance coverage limits, and the vehicle's insurance-rating group.

Front

What does age group A signify in auto insurance?

Back

Age group A typically refers to a classification of drivers that are considered lower risk, often younger or less experienced drivers.

Front

What is the purpose of insurance-rating groups?

Back

Insurance-rating groups categorize vehicles based on their risk level, which affects the cost of insurance premiums.

Front

How can a consumer estimate the total cost of purchasing a new car?

Back

A consumer can estimate the total cost by adding the base price, options, and destination charges.