Midlands Insurance Has 100 Policyholders

Multiple Choice

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