Term Test 1_solutions

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

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

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