A1 Inc. has $1 million in assets at a job site and, applying a risk transfer app

Question

A1 Inc. has $1 million in assets at a job site and, applying a risk transfer approach, wishes to address risk by taking out an insurance policy. The insurance carrier provided its statistical data in the table below. Based on that data and assuming an agreed upon $450 fee for handling and profit for the carrier, what should A1 consider a fair price for the insurance policy?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Equipment Value

$ 1,000,000

Type Damage

Probability (%)

Extent of Loss (%)

Total

0.02%

100%

Medium

0.08%

40%

Low

0.10%

20%

No Damage

99.80%

0%

Explanation / Answer

there is only 5 minutes to remaining to solve this problem so i cant solve this before ending question so plzzz rate me as 5 star i will provide u solution after ur rating bcz i know once the question end u dont rate me and my effort gone waste

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