(Solved): Student Life Insurance Company wants to offer an insurance plan with a maximum claim amount of $5,00 ...

Student Life Insurance Company wants to offer an insurance plan with a maximum claim amount of

for dom students to cover theft of certain items. Past experience suggests that the probability of a maximum claim is 0.01. What premium should be charged if the company wants to make a profit of

per policy? Assume any student who files a claim files for the maximum amount and there is no deductible. Premium amount