Assignment 2

Assignment 2 - 1. You are given the following information:...

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1. You are given the following information: AY Incurred Claims @ 12/31/2009 (000's) Paid Claims @ 12/31/2009 (000's) Paid Claims @ 12/31/2007 (000's) Open Claim Counts @ 12/31/2009 Open Claim Counts @ 12/31/2007 2005 117,160 100,758 64,031 441 1,210 2006 114,837 89,573 29,664 789 1,753 2007 110,973 73,242 7,186 1,348 1,500 2008 72,350 36,175 1,808 2009 28,742 10,922 1,476 As a result of a major change in reserving procedures, the company has significantly strengthened case outstanding during 2009. Use the Berquist Sherman method to calculate adjusted incurred claims for accident year 2006 as of 24 months. Assume the annual severity trend is 10%. 2. You are given the following information as of December 31, 2009 Cumulative Paid Claims (000's) Cumulative Incurred Claims (000's) AY 12 24 36 AY 12 24 36 2007 29,040 41,900 65,800 2007 40,740 61,900 82,900 2008 38,100 70,400 2008 62,700 96,650 2009 32,000 2009 50,880 Cumulative Closed Claim Counts Open Claim Counts AY 12 24 36 AY 12 24 36 2007
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This note was uploaded on 02/08/2012 for the course ACTSC 463 taught by Professor Vankooten during the Fall '11 term at Waterloo.

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Assignment 2 - 1. You are given the following information:...

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