Term Test 1_solutions

Total number groundup accident reported ofexcess

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: ore, future trend period = July 1, 2011 to Oct 1, 2013 = 2.25 years • Loss trend factor = 1.042 x 1.032.25 = 1.156 {See lecture #3, slide 36. See page 115 and 116 of the text} (2) 4. a) What are 3 adjustments that are made to premiums in the rate making process? b) Which adjustment would you use if you were changing the deductibles of all policyholders from a lower deductible to a higher deductible? Solution: a) i) bring historical premium to current levels (on level) ii) develop premium to ultimate level if still changing iii) project the historical premium to the premium level expected in the future (i.e. premium trend) b) This would be an adjustment for a change in mix of...
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