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Unformatted text preview: 8. Months for los trend 30 monthsFrom 7/1/20 6 to 1/1/20 9 Note: The average date that los es are paid is 12 months after the date of ac ident. 9. Los trend factor Raise 1.05 to 30/12 power 10. Inadequacy in los es 1.05 Actuary Auto Insurance Ratemaking 05/07/20 9 as of 06:38:46 CAB CONSULTING, L L Page 2 718baef6f3e7a69e594e89516e614 0a924283ac.xls 1 . Los es adjusted for trend and development(inadequacy) Pure Clas Car Years Adjusted Los es Premium Young drivers Adult Drivers Total 12. Profit and Contingency Factor 0.1 CEO/CFO/Actuary 13. Required Expense Loading 14. Indicated rates Clas Young drivers Adult drivers Total Question: What distribution system wil you use? Question: What wil be your initial rates? Ad ed fact: If a risk is rated with go d credit, then the los es it generates wil be 10% les than average. How does this change your answer?...
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- Winter '08