Albanese Co. is an insurance company specializing in short-term insurance products. You are given the following data from one of its products. Calendar year Earned premium CY1 2,000 CY2 3,000 CY3 4,000 Assume all policies are six-month policies and that the policies are issued uniformly through- out the year. The following rate changes have occurred: Date Rate Change September 1, CY1 +8% July 1, CY2 +10% April 1, CY3 5% Using the parallelogram method, calculate the earned premium for CY1, CY2, and CY3 based on current rates?

Answer rating: 100% (QA)

To calculate the earned premium for CY1 CY2 and CY3 based on the current rates using the parallelogram method we need to consider the impact of the ra... View the full answer