Final answer:
Drivers with 'serious convictions' generally pay surcharges for 3 to 5 years. Surcharges are additional to the annual premium. One hundred drivers paying $1,860 annually will generate $186,000 for the insurance company to cover accident costs.
Step-by-step explanation:
Under "serious convictions," drivers will typically pay assigned surcharges for a duration specified by state law or insurance company policies, which often ranges from 3 to 5 years. These surcharges are additional charges on top of their insurance premiums, intended to cover the increased risk of insuring drivers who have shown to be high-risk due to their driving record. Using your provided information, if each of the 100 drivers pays an annual premium of $1,860, the insurance company accumulates $186,000 per year, which is earmarked to offset the financial impact of accidents within that pool of insured drivers.