Assignment 1

Assignment 1 - 1. Use the transactional data (as of...

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1. Use the transactional data (as of December 31, 2008) to develop cumulative accident year paid and incurred loss triangles. a) What are the accident year 2006 incurred losses at December 31, 2007? b) What are the report year 2007 paid losses at December 31, 2008? c) What are the calendar year 2007 incurred losses? 2. An insurance company has 40 open claim counts as of December 31, 2009. Each has the same average reserve value of $7,500. The following is a breakdown of activity on these claims counts during the 2010 calendar year: Five claim counts closed with payment for a total of $80,000. Five claim counts closed without payment. Five claim counts with a partial payment of $2,500 each, with a corresponding decrease in case outstanding on each claim of $2,500. Five claim counts with a partial payment of $5,000 each, with each of these five claim counts having an increase in case outstanding to $10,000. Twenty claim counts remain open with no activity during the year.
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Assignment 1 - 1. Use the transactional data (as of...

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