Question

If Jerry Adams would normally pay $875 for bodily injury

and property damage insurance, find his premium for the
year after he has three accidents.

Answer 1

Jerry Adams normally pays $875 for bodily injury and property damage insurance. His insurance company increases premiums by 150% for 1 accident, 200% for 2-3 accidents, and 250% for 4 accidents. Find ... If the probability that he will live through the year is 0.9989, what is the expected value for the insurance policy?