Determine the correct price (premium) to charge for the $10,000, $20,000 and $50,000 prize on a per tournament basis. 144 people play in each golf tournament. It is suggested that you charge the tournament a premium instead of charging the golfers individually. You need to show your calculations in your submission. Make sure you double check your pricing - test your price with claim payment scenarios.

2. You need to also come up with some rules for managing the insurance product that will be sold by either agents, brokers, or online. You decide how it is sold. You decide on the rules.

3. Do you allow professional or amateur golfers - tell me why? Is the hole shorter for women golfers versus men - tell me why?

4. What is the minimum length of the hole in one price hole (100 yards, 125 yards, 150 yards, 175 yards, 200 yards)? Tell me why it needs to be that long.

5. What happens if people try to cheat? What rules do you need to prevent cheating?

6. Bonus marks for valid unique ideas on how to manage the Hole-in-One insurance?

Answer rating: 100% (QA)

SOLUTION 1 To determine the correct premium to charge for the 10000 20000 and 50000 prizes we need to calculate the expected value of the prize payout and add a margin for profit and administration ex... View the full answer