Term Test 1_solutions

1 00 41 89 79 54 4 3 2 x 500000 5 1

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: business {See lecture #2, slide 19 and page 71 of the text for the 3 methods. See lecture #2, slide 31 for answer to (b)} (2) 5. Based on the following information, calculate the excess loss factor to be used in rate making for losses capped at $500,000. Total Number Ground‐Up Accident Reported of Excess Excess Year Losses Claims Losses 2006 $8,250,000 2 $1,400,000 2007 $6,750,000 0 $0 2008 $8,800,000 3 $1,850,000 2009 $9,200,000 5 $3,250,000 2010 $8,150,000 3 $2,100,000 Solution: ( 1) (2) Total Number Accident Reported of Excess Year Losses Claims 2006 $8,250,000 2 2007 $6,750,000 0 2008 $8,800,000 3 2009 $9,200,000 5 2010 $8,150,000 3 Total $41,150,000 (...
View Full Document

This note was uploaded on 04/14/2012 for the course ACTSC 462 taught by Professor Wslennox during the Spring '11 term at Waterloo.

Ask a homework question - tutors are online